The Following Selected Financial Information for a Company Was Reported

question 160

Essay

The following selected financial information for a company was reported for the current year end.Calculate the following company ratios:
(a)Accounts receivable turnover.
(b)Inventory turnover.
(c)Days' sales uncollected
Accounts receivable,beginning-year……………. $170,000
Accounts receivable,year-end…………………… 190,000
Merchandise inventory,beginning-year…………. 80,000
Merchandise inventory,year-end………………… 60,000
Cost of goods sold………………………………... 580,000
Credit sales………………………………………... 1,000,000

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