Problem #2 (Adapted) The following selected data were taken from the records of Delta Company: Beginning Ending Accounts P60,000 P40,000 Receivable - net 55,000 65,000 Inventory Sales (all on credit) 600,000 Cost of Goods Sold 360,000 Required: A. Compute the following ratios. Show your solution. 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Days sales in inventory Delta's credit term is 2/10, n/30. The industry average inventory turnover is 8 times. Comments on Delta's efficiency in managing its accounts receivable and inventory. В.

Problem #2 (Adapted) The following selected data were taken from the records of Delta Company: Beginning Ending Accounts P60,000 P40,000 Receivable - net 55,000 65,000 Inventory Sales (all on credit) 600,000 Cost of Goods Sold 360,000 Required: A. Compute the following ratios. Show your solution. 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Days sales in inventory Delta's credit term is 2/10, n/30. The industry average inventory turnover is 8 times. Comments on Delta's efficiency in managing its accounts receivable and inventory. В.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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