The following information was available for the year ended December 3 1.2 0 16: Net sales ....................................................................................$365.000

Question:

The following information was available for the year ended December 3 1.2 0 16:

Net sales ....................................................................................$365.000

Cost of goods sold....................................................................... 292.000

Average accounts receivable for t he year................................. 14.600

Accounts receivable at year end.................................................. 16.000

Average inventory for the year.................................................... 73.000

Inventory at year end.................................................................... 78.400

Required:

a. Calculate the inventory turnover for 2016.

b. Calculate the number of days' sales in inventory for 2016, using year-end inventories.

c. Calculate the accounts receivable turnover for 2016.

d. Calculate the number of days' sales in accounts receivable for 2016, using year-end accounts receivable.

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...