Required: (Round answers to one decimal place)1. Calculate the accounts receivable turnover ratio2. Calculate the average inventory ratio3. Based on these ratios, does Nikkola appear to be performing well or poorly? B. Last year, Nikkola Company had net sales of P2,299,500, and cost of goods sold of P1,755,000.Nikkola had the following balances:January 1December 31Accounts ReceivableP142,650,000P172,350,000Inventories54,374,20062,625,800

Lets understand the basics. Account receivable turnover ratio indicates how efficiently company is…

B. Last year, Nikkola Company had net sales of P2,299,500, and cost of goods sold of P1,755,000. Nikkola had the following balances: January 1 P142,650,000 December 31 Accounts Receivable P172,350,000 Inventories 54,374,200 62,625,800

B. Last year, Nikkola Company had net sales of P2,299,500, and cost of goods sold of P1,755,000. Nikkola had the following balances: January 1 P142,650,000 December 31 Accounts Receivable P172,350,000 Inventories 54,374,200 62,625,800

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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Question

Required: (Round answers to one decimal place) 1. Calculate the accounts receivable turnover ratio 2. Calculate the average inventory ratio 3. Based on these ratios, does Nikkola appear to be performing well or poorly?

B. Last year, Nikkola Company had net sales of P2,299,500, and cost of goods sold of P1,755,000.
Nikkola had the following balances:
January 1
December 31
Accounts Receivable
P142,650,000
P172,350,000
Inventories
54,374,200
62,625,800

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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