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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
ed
ok
ences
IE 4-3 (Static) Based on Exercise 4-15 Receivables and inventory turnover ratios [LO4-10]
Speed Cycles, Incorporated began the year with accounts receivable (net) and inventory balances of $172,000 and $120,400,
generated a gross profit of $267,000.
respectively. Year-end balances for these accounts were $206,000 and $96,300, respectively. Sales for the year of $430,000
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.
W
S
*
E
D
C
**
388
R
F
V
G
MacBook Air
Y
B
H
N
FB
K
M
Transcribed Image Text:ed ok ences IE 4-3 (Static) Based on Exercise 4-15 Receivables and inventory turnover ratios [LO4-10] Speed Cycles, Incorporated began the year with accounts receivable (net) and inventory balances of $172,000 and $120,400, generated a gross profit of $267,000. respectively. Year-end balances for these accounts were $206,000 and $96,300, respectively. Sales for the year of $430,000 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. W S * E D C ** 388 R F V G MacBook Air Y B H N FB K M
Expert Solution
Step 1

Solution:

Accounts receivables turnover = Sales / Average accounts receivables

Inventory  turnover = Cost of goods sold / average inventory

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Ratio Analysis
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
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education