Following are data for December 31,2021: $5,365,000 492,000 730,000 Net sales Cost of sales, and related buying costs Accounts receivable, December 31, 2021 Accounts receivable, December 31, 2020 Merchandise inventories, December 31, 2021 700,000 166,500 Merchandise inventories, December 31, 2020 Assume 365 days in a year. 105,500 Required: 1. Compute the accounts receivable turnover ratio in 2021: times Required Computation: 2. What is the average collection period, in days, for accounts receivable: days Required Computation: 3. Compute the inventory turnover for 2021. Required Computation: 4. Compute the average length of time in days to sell inventory. Required Computation:
Following are data for December 31,2021: $5,365,000 492,000 730,000 Net sales Cost of sales, and related buying costs Accounts receivable, December 31, 2021 Accounts receivable, December 31, 2020 Merchandise inventories, December 31, 2021 700,000 166,500 Merchandise inventories, December 31, 2020 Assume 365 days in a year. 105,500 Required: 1. Compute the accounts receivable turnover ratio in 2021: times Required Computation: 2. What is the average collection period, in days, for accounts receivable: days Required Computation: 3. Compute the inventory turnover for 2021. Required Computation: 4. Compute the average length of time in days to sell inventory. Required Computation:
Chapter7: Budgeting
Section: Chapter Questions
Problem 9PB: Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May,...
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Number 5
![5. Compute the Cash to Cash Operating Cycle
Required Computation:
6. Evaluate the liquidity of accounts receivable and inventory.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4390ff9-be31-4b08-a24a-9b9fb60c73a7%2Fbd0a2f6d-1e61-4761-9155-e97a884e551b%2Fynrwvuh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. Compute the Cash to Cash Operating Cycle
Required Computation:
6. Evaluate the liquidity of accounts receivable and inventory.
![Following are data for December 31,2021:
$5,365,000
Net sales
Cost of sales, and related buying costs
Accounts receivable, December 31, 2021
Accounts receivable, December 31, 2020
Merchandise inventories, December 31, 2021
Merchandise inventories, December 31, 2020
492,000
730,000
700,000
166,500
105,500
Assume 365 days in a year.
Required:
1. Compute the accounts receivable turnover ratio in 2021:
times
Required Computation:
2. What is the average collection period, in days, for accounts receivable:
days
Required Computation:
3. Compute the inventory turnover for 2021.
Required Computation:
4. Compute the average length of time in days to sell inventory.
Required Computation:
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4390ff9-be31-4b08-a24a-9b9fb60c73a7%2Fbd0a2f6d-1e61-4761-9155-e97a884e551b%2F576tvb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Following are data for December 31,2021:
$5,365,000
Net sales
Cost of sales, and related buying costs
Accounts receivable, December 31, 2021
Accounts receivable, December 31, 2020
Merchandise inventories, December 31, 2021
Merchandise inventories, December 31, 2020
492,000
730,000
700,000
166,500
105,500
Assume 365 days in a year.
Required:
1. Compute the accounts receivable turnover ratio in 2021:
times
Required Computation:
2. What is the average collection period, in days, for accounts receivable:
days
Required Computation:
3. Compute the inventory turnover for 2021.
Required Computation:
4. Compute the average length of time in days to sell inventory.
Required Computation:
%24
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