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:

Cardiology

The study of the heart and its diseases.

Voltage

A measure of electromotive force.

Electromotive Force

A difference in potential that provides the energy per unit charge necessary to move charge from one point to another, commonly used in relation to electric circuits.

Impulse

A charge transmitted through certain tissues, especially nerve fibers and muscles, resulting in physiologic activity.