Speed Cycles, Incorporated began the year with accounts receivable (net) and inventory balances of $172,000 and $120,400, respectively. Year-end balances for these accounts were $206,000 and $96,300, respectively. Sales for the year of $430,000 generated a gross profit of $267,000. Required: Calculate the receivables and inventory turnover ratios for the year. Navigation: 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
Speed Cycles, Incorporated began the year with accounts receivable (net) and inventory balances of $172,000 and $120,400, respectively. Year-end balances for these accounts were $206,000 and $96,300, respectively. Sales for the year of $430,000 generated a gross profit of $267,000. Required: Calculate the receivables and inventory turnover ratios for the year. Navigation: 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.10.4MBA
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Accounts receivables turnover = Sales / Average accounts receivables
Inventory turnover = Cost of goods sold / average inventory
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