The Following Data Were Available for Lorie Company

question 71

Essay

The following data were available for Lorie Company:

Sales revenue, $225,000 (including 75,000 cash sales)
Cost of goods sold, $175,000
Average inventory (per month), $20 ,000
Average monthly balance in trade receivables, $20 ,000

Assume a business year of 365 days and calculate the following:
(a) Inventory turnover ______________
(b) Days' supply in inventory ___________
(c) Receivables turnover ___________
(d) Average number of days to collect receivables ________________

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Definitions:

Professional

Pertaining to a person who engages in a particular profession or occupation with competence and often adheres to its ethical standards.

Nonverbal Communication

Any communication, other than written or spoken language, that creates meaning for someone.

Verbal

Pertains to the use of words in communication, often involving spoken language.

Transactional

Occurring simultaneously.