Question: Calculate and interpret liquidity ratios Calculate the inventory turnover, days in inventory, Accounts receivable turnover and the Average Collection period for the years ending June 30, 2020, and 2019 for the Green Construction Supplies Company.Assuming that they have a 60-day credit policy, evaluate their accounts receivable management and recommend ways to improve it.Evaluate their inventory management and suggest ways to improve it.Selected information ($)202020192018Net Sales (80% on credit)430,000720,000640,000Cost of Goods Sold250000350000320000Accounts Receivable220,000110,00076,000Allowance for doubtful accounts350001800014000Bad debt expense30000120009000Inventory15000010000080000

Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

Answered: Question: Calculate and interpret…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Question: Calculate and interpret liquidity ratios

Calculate the inventory turnover, days in inventory, Accounts receivable turnover and the Average Collection period for the years ending June 30, 2020, and 2019 for the Green Construction Supplies Company.
Assuming that they have a 60-day credit policy, evaluate their accounts receivable management and recommend ways to improve it.
Evaluate their inventory management and suggest ways to improve it.

Selected information ($)	2020	2019	2018
Net Sales (80% on credit)	430,000	720,000	640,000
Cost of Goods Sold	250000	350000	320000
Accounts Receivable	220,000	110,000	76,000
Allowance for doubtful accounts	35000	18000	14000
Bad debt expense	30000	12000	9000
Inventory	150000	100000	80000

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions