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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

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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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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