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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem #2 (Adapted)
The following selected data were taken from the records of Delta
Company:
Beginning
Ending
Accounts
Р60,000
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.
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