The Following Information Was Available for the Year Ended December

question 18

Essay

The following information was available for the year ended December 31, 2016:
Required:
(a.) Calculate the inventory turnover for 2016.(b.) Calculate the number of days' sales in inventory for 2016, using year-end inventories.(c.) Calculate the accounts receivable turnover for 2016.(d.) Calculate the number of days' sales in accounts receivable for 2016, using year-end accounts receivable.

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Definitions:

Disposable Income

Spendable and savable funds available to households after the deduction of income taxes.

Consumption

The act of using goods and services to satisfy needs and desires, often considered a primary component of an economy's activity.

Disposable Income

The funds left for households to manage spending and saving after income tax calculations.

Consumption

The part of personal income that is spent on goods and services rather than saved, influencing economic activity and demand.