Assignments: × Chapter 11(10 Points) enomeducation.contripr?..090799971 51390885

Question

Assignments: × Chapter 11(10 Points) enomeducation.contripr?..090799971 51390885,1510620929376 The following information was available for the year ended December 31, 2016 C 803.000 Cost of goods sold verage accounts recelvable for the yea Aocounts recelvable at year-end Average inventory for the year 38 700 30 800 162,000 57 450 a Calculate the inventory tumover for 2016 Round your answer to 2 decimal places b Caloulate the number of days sales in inventory for 2016, using year-end inventories (Use 365 days a year Round your answer to 1 decimal place) e. Calculate the accounts neceivable turnover for 2016. (Round your answer to 1 decimal place d. Caloulate the number of days sales in accounts neceivable for 2018, using year-gd accounts neceivable (Use 365 days a year. Round your answer to 1 3 5 6 8 9

Explanation / Answer

Answer =1 Inventory turnover Ratio = Cost of Goods Sold / Average inventory Inventory turnover Ratio = Cost of Goods Sold = 598600 Divide By "/" Average Inventory $     1,62,000.00 = Inventory turnover Ratio = 3.70 Answer =2 Inventory turnover Ratio = Cost of Goods Sold = 598600 Divide By "/" Average Inventory $     1,57,450.00 = Inventory turnover Ratio = 3.80 No. of Days in sales in inventory = No. of Days in inventoiry / Inventory Turonver ratio No. of Days in sales in inventory = 365 Days / 3.80 No. of Days in sales in inventory = 96.01 Days Answer = 3 Account receivable Turnover ratio = Net Sales / Average Account Receivable Account receivable Turnover ratio = Net Sales =         8,03,000.00 Divide By "/" Average Account Receivable = $        38,700.00 Account receivable Turnover ratio =                     20.75 Times Answer = 4 Account receivable Turnover ratio = Net Sales / Average Account Receivable Account receivable Turnover ratio = Net Sales =         8,03,000.00 Divide By "/" Average Account Receivable = $        30,800.00 Account receivable Turnover ratio =                     26.07 Times No. of Days in Account Receivable = No. of Days in year X Account recievable turnover Ratio No. of Days in Account Receivable = 365 Days / 26.07 No. of Days in Account Receivable = 14 Days Answer = 14 Days

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