Accounts Receivable and Inventory Turnover Use the following information to respond to the questions below. Round all numbers to 1 place past the decimal (Example: 4.1, 90.7, 3.0) Current Prior Year Year Net Sales 580,000 539,000 Cost of Goods Sold 377,000 345,000 Accounts Receivable, beginning of year : 71,000 73,000 Accounts Receivable, end of year 61,400 71,000 Inventory, beginning of year 48,000 65,600 Inventory, end of year 87,800 48,000 IMPORTANT: When calculating Days use the Turnover that you calculated previously that was rounded to 1 place past the decimal. If you use more decimal places, it will likely be wrong. Current Prior Year Year Accounts Receivable Turnover AR Days (365/AR Turn) Inventory Turnover Inventory Days (365/Inv. Turn)
Accounts Receivable and Inventory Turnover Use the following information to respond to the questions below. Round all numbers to 1 place past the decimal (Example: 4.1, 90.7, 3.0) Current Prior Year Year Net Sales 580,000 539,000 Cost of Goods Sold 377,000 345,000 Accounts Receivable, beginning of year : 71,000 73,000 Accounts Receivable, end of year 61,400 71,000 Inventory, beginning of year 48,000 65,600 Inventory, end of year 87,800 48,000 IMPORTANT: When calculating Days use the Turnover that you calculated previously that was rounded to 1 place past the decimal. If you use more decimal places, it will likely be wrong. Current Prior Year Year Accounts Receivable Turnover AR Days (365/AR Turn) Inventory Turnover Inventory Days (365/Inv. Turn)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 9E
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Topic Video
Question
![Accounts Receivable and Inventory Turnover
Use the following information to respond to the questions below.
Round all numbers to 1 place past the decimal (Example: 4.1, 90.7, 3.0)
Current
Prior
Year
Year
Net Sales
580,000 539,000
Cost of Goods Sold
377,000 345,000
Accounts Receivable, beginning of year : 71,000
73,000
Accounts Receivable, end of year
61,400
71,000
Inventory, beginning of year
48,000
65,600
Inventory, end of year
87,800
48,000
IMPORTANT: When calculating Days use the Turnover that you calculated previously that was
rounded to 1 place past the decimal. If you use more decimal places, it will likely be wrong.
Current
Prior
Year
Year
Accounts Receivable Turnover
AR Days (365/AR Turn)
Inventory Turnover
Inventory Days (365/Inv. Turn)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcbed4081-e845-4838-b386-726b7eb7e26e%2F44d250a0-d8ed-4ccb-8e89-6f7242e02659%2Fehq9afi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Accounts Receivable and Inventory Turnover
Use the following information to respond to the questions below.
Round all numbers to 1 place past the decimal (Example: 4.1, 90.7, 3.0)
Current
Prior
Year
Year
Net Sales
580,000 539,000
Cost of Goods Sold
377,000 345,000
Accounts Receivable, beginning of year : 71,000
73,000
Accounts Receivable, end of year
61,400
71,000
Inventory, beginning of year
48,000
65,600
Inventory, end of year
87,800
48,000
IMPORTANT: When calculating Days use the Turnover that you calculated previously that was
rounded to 1 place past the decimal. If you use more decimal places, it will likely be wrong.
Current
Prior
Year
Year
Accounts Receivable Turnover
AR Days (365/AR Turn)
Inventory Turnover
Inventory Days (365/Inv. Turn)
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