Comparative calendar-year financial data for a company are shown below. Calculate the following ratios for the company for Year 2:(a) accounts receivable turnover(b) day's sales uncollected(c) inventory turnover(d) days' sales in inventory? Year 2Year 1Sales$ 720,000$607,500Cost of goods sold450,000382,700Operating expenses168,500134,900Net income51,20051,700????December 31,December 31,?Year 2Year 1Accounts receivable (net)$ 157,500$162,500Inventory139,500110,500Total assets1,012,500944,800
What will be an ideal response?
| (a) $720,000/[($157,500 + $162,500)/2] = | 4.5 times |
| ? | ? |
| (b) ($157,500/$720,000) * 365 = | 79.8 days |
| ? | ? |
| (c) $450,000/[($139,500 + $110,500)/2] = | 3.6 times |
| ? | ? |
| (d) ($139,500/$450,000) * 365 | 113.2 days |
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