Glee Consolidated had sales of $15,000,000 for 2014. On December 31, 2013 the balance in Accounts Receivable was $700,000 and on December 31, 2014 the balance was $1,300,000. On December 31, 2013 the balance in Inventory was $400,000 and on December 31, 2014 the balance was $600,000. The Cost of Goods Sold during 2014 was $11,000,000. -Compute the Accounts Receivable turnover ratio. -Compute the Inventory turnover ratio.
Glee Consolidated had sales of $15,000,000 for 2014. On December 31, 2013 the balance in Accounts Receivable was $700,000 and on December 31, 2014 the balance was $1,300,000. On December 31, 2013 the balance in Inventory was $400,000 and on December 31, 2014 the balance was $600,000. The Cost of Goods Sold during 2014 was $11,000,000. -Compute the Accounts Receivable turnover ratio. -Compute the Inventory turnover ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Glee Consolidated had sales of $15,000,000 for 2014. On December 31, 2013 the balance in
-Compute the Accounts Receivable turnover ratio.
-Compute the Inventory turnover ratio.
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