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

question 77

Essay

Comparative calendar-year financial data for a company are shown below.Calculate the following ratios for the company for 2018:
(a)accounts receivable turnover
(b)day's sales uncollected
(c)inventory turnover
(d)days' sales in inventory
$$\begin{array} { | l | r | r | } \hline & \underline { 2018 } & { 2017 } \\\hline \text { Sales } & \$ 720,000 & \$ 607,500 \\\hline \text { Cost of goods sold } & 450,000 & 382,700 \\\hline \text { Operating expenses } & 168,500 & 134,900 \\\hline \text { Net income } & 51,200 & 51,700 \\\hline & & \\\hline & \text { December } 31 , & \text { December } 31 , \\\hline & \underline { 2018 } & \underline { 2017 } \\\hline \text { Accounts receivable (net) } & \$ 157,500 & \$ 162,500 \\\hline \text { Inventory } & 139,500 & 110,500 \\\hline \text { Total assets } & 1,012,500 & 944,800 \\\hline\end{array}$$

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