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 year. 492,000 730,000 700,000 166,500 105,500 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: 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 year. 492,000 730,000 700,000 166,500 105,500 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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Number 1
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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