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Accounts Receivable and Inventory Ratios Ritter Company, whose current assets at December 31 are shown below, had net sales for the year of $850,000 and cost of goods sold of $550,000. At the beginning of the year, Ritter's accounts receivable (net) were $160,000 and its inventory was $175,000. Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Current assets $32,000 49,300 170,000 200,000 11,600 $462,900 Instructions: • Round turnover ratios to two decimal places. • Use rounded turnover ratios to compute respective days' ratios. Round days' ratios to the nearest whole number (day). What is the company's accounts receivable turnover for the year? 0 What is the company's average collection period for the year? 0 days What is the company's inventory turnover for the year? 0 What is the company's days' sales in inventory for the year? days

Accounts Receivable and Inventory Ratios Ritter Company, whose current assets at December 31 are shown below, had net sales for the year of $850,000 and cost of goods sold of $550,000. At the beginning of the year, Ritter's accounts receivable (net) were $160,000 and its inventory was $175,000. Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Current assets $32,000 49,300 170,000 200,000 11,600 $462,900 Instructions: • Round turnover ratios to two decimal places. • Use rounded turnover ratios to compute respective days' ratios. Round days' ratios to the nearest whole number (day). What is the company's accounts receivable turnover for the year? 0 What is the company's average collection period for the year? 0 days What is the company's inventory turnover for the year? 0 What is the company's days' sales in inventory for the year? days

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounts Receivable and Inventory Ratios Ritter Company, whose current assets at December 31 are shown below, had net sales for the year of $850,000 and cost of goods sold of $550,000. At the beginning of the year, Ritter's accounts receivable (net) were $160,000 and its inventory was $175,000. Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Current assets $32,000 49,300 170,000 200,000 11,600 $462,900 Instructions: • Round turnover ratios to two decimal places. • Use rounded turnover ratios to compute respective days' ratios. Round days' ratios to the nearest whole number (day). What is the company's accounts receivable turnover for the year? 0 What is the company's average collection period for the year? 0 days What is the company's inventory turnover for the year? 0 What is the company's days' sales in inventory for the year? 0 days
Transcribed Image Text:Accounts Receivable and Inventory Ratios Ritter Company, whose current assets at December 31 are shown below, had net sales for the year of $850,000 and cost of goods sold of $550,000. At the beginning of the year, Ritter's accounts receivable (net) were $160,000 and its inventory was $175,000. Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Current assets $32,000 49,300 170,000 200,000 11,600 $462,900 Instructions: • Round turnover ratios to two decimal places. • Use rounded turnover ratios to compute respective days' ratios. Round days' ratios to the nearest whole number (day). What is the company's accounts receivable turnover for the year? 0 What is the company's average collection period for the year? 0 days What is the company's inventory turnover for the year? 0 What is the company's days' sales in inventory for the year? 0 days
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