question accounts receivable and inventory ratios bell company whose current assets 4305633

question accounts receivable and inventory ratios bell company whose current assets 4305633

Question

Accounts Receivable and Inventory Ratios

Bell Company, whose current assets at December 31 are shown below, had net sales for the year of $900,000 and cost of goods sold of $550,000. At the beginning of the year, Bell’s accounts receivable (net) were $160,000 and its inventory was $195,000.

Round the turnover calculations to two decimal points. Use 365 days in a year and round days calculations to the nearest day (whole number).

a. What is the company’s accounts receivable turnover for the year?

b. What is the company’s average collection period for the year?

days

c. What is the company’s inventory turnover for the year?

d. What is the company’s days’ sales in inventory for the year?

days

Cash

$29,000

Short-term investments

49,400

Accounts receivable (net)

170,000

Inventory

200,000

Prepaid expenses

11,600

Current assets

$460,000

 

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now

Related Posts