Excerpts from Dowling Company's December 31, 2016, and 2015, financial statements and key ratios are presented below (all dollar values are in millions): 2016 2015 Accounts receivable $38 $15 Net sales $250 $70 Cost of goods sold $123 $108 Net income Inventory turnover 6 $38 $14 Return on assets 12.1% 2.54 Equity multiple Dowling's 2016 average collection period is: A. 35 days B. 45 days C. 39 days D. 36 days

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.8E
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Excerpts from Dowling Company's December 31, 2016, and 2015, financial statements and
key ratios are presented below (all dollar values are in millions):
2016 2015
Accounts receivable $38 $15
Net sales
$250 $70
Cost of goods sold $123 $108
Net income
Inventory turnover 6
$38 $14
Return on assets
12.1%
2.54
Equity multiple
Dowling's 2016 average collection period is:
A. 35 days
B. 45 days
C. 39 days
D. 36 days
Transcribed Image Text:Excerpts from Dowling Company's December 31, 2016, and 2015, financial statements and key ratios are presented below (all dollar values are in millions): 2016 2015 Accounts receivable $38 $15 Net sales $250 $70 Cost of goods sold $123 $108 Net income Inventory turnover 6 $38 $14 Return on assets 12.1% 2.54 Equity multiple Dowling's 2016 average collection period is: A. 35 days B. 45 days C. 39 days D. 36 days
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