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

question 136

Essay

Flite 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. $$\begin{array} { l c } \text { Beginning inventory } & \$ 482,000 \\\text { Purchases } & 4,036,000 \\\text { Ending inventory } & ? \\\text { Average accounts receivable } & 800,000 \\\text { Average common stockholders' equity } & 3,500,000 \\\text { Sales (all on credit) } & 5,000,000 \\\text { Net income } & 385,000\end{array}$$ Instructions
Compute the following:
(a) Accounts receivable turnover and the average collection period.
(b) Inventory turnover and the days in inventory.
(c) Return on common stockholders' equity.

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