Following are data for December 31,2021: Net sales $5,365,000 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 Assume 365 days in a 492,000 730,000 700,000 166,500 105,500 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. 24 Required Computation: 4. Compute the average length of time in days to sell inventory. Required Computation:
Following are data for December 31,2021: Net sales $5,365,000 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 Assume 365 days in a 492,000 730,000 700,000 166,500 105,500 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. 24 Required Computation: 4. Compute the average length of time in days to sell inventory. Required Computation:
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 4MC
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