The 2013 and 2014 balance sheets for Jackson and Sons showed net accounts receivable of $10,000 and

Question:

The 2013 and 2014 balance sheets for Jackson and Sons showed net accounts receivable of $10,000 and $14,000, respectively, and inventory of $8,000 and $6,000, respectively. The company’s 2014 income statement showed net sales of $109,500 and cost of goods sold of $70,000. Compute the following ratios for 2014:

1. Accounts receivable turnover

2. Days’ sales in receivables

3. Inventory turnover

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...