Alfred Slide Owns a Toy Store in Which There Is

question 28

Short Answer

Alfred Slide owns a toy store in which there is a state sales tax of 4%. For the week of December 9, sales were $154,000, and that included the 4% sales tax. Alfred would like a breakdown of actual sales as well as the amount of sales tax owed to the state. Can you help Alfred?

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Definitions:

Payables Turnover

A financial ratio that shows how quickly a company pays off its suppliers by comparing net purchases to average accounts payable.

Accounts Receivable Period

The average number of days it takes for a company to collect payments from its credit sales.

Cash Cycle

The duration a company takes to convert its investments in inventory and other resources into cash flows from sales.

Inventory Period

The average time that goods remain in inventory before being sold, reflecting a company's efficiency in managing inventory.