Comparative Calendar-Year Financial Data for a Company Are Shown Below

question 139

Essay

Comparative calendar-year financial data for a company are shown below.Calculate the following ratios for the company for Year 2:
(a)accounts receivable turnover
(b)day's sales uncollected
(c)inventory turnover
(d)days' sales in inventory

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Definitions:

Notes Payable

A written agreement to pay a specified amount, usually including interest, by a certain date.

Direct Method

A way of preparing a cash flow statement where actual cash flows from operating activities are listed directly.

Statement Of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Direct Method

A way of reporting cash flows from operating activities in a cash flow statement that lists specific types of cash receipts and payments.