Jones Corporation Has Issued Common Stock Only Instructions
Compute the Following:
(A) Accounts Receivable Turnover and the Been

question 26

Essay

Jones Corporation has issued common stock only. The company has been successful and has a gross profit rate of 20%. The information shown below was taken from the company's financial statements. $\begin{array}{lr}\text { Beginning inventory } & 482,000 \\\text { Purchases } & 4,346,000 \\\text { Ending inventory } & ? \\\text { Average accounts receivable } & 700,000 \\\text { Average common stockholders' equity } & 3,100,000 \\\text { Sales revenue (all on credit) } & 5,600,000 \\\text { Net income } & 341,000\end{array}$ Instructions
Compute the following:
(a) Accounts receivable turnover and the average number of days required to collect the accounts receivable.
(b) The inventory turnover and the average days in inventory.
(c) Return on common stockholders' equity.

---

Definitions:

Government

The organization, or group of organizations, in a society that has the authority to make and enforce laws, policies, and decisions for its citizens.

Constitution

The supreme law of the United States of America, originally ratified in 1788, which establishes the national government's framework, fundamental laws, and guarantees certain basic rights for its citizens.

Voting Rules

Regulations and procedures that govern how votes are cast, counted, and managed in an election, often varying significantly between different countries and types of elections.

Property Requirement

A historical legal or political stipulation that only individuals who own property or meet certain wealth criteria are eligible to vote or hold public office.