Universal Calendar Company began the year with accounts receivable (net) and inventory balances of $100,000 and $80,000, respectively. Year-end balances for these accounts were $120,000 and $60,000, respectively. Salesfor the year of $600,000 generated a gross profit of $200,000. Calculate the receivables and inventory turnover ratios for the year.
Universal Calendar Company began the year with accounts receivable (net) and inventory balances of $100,000 and $80,000, respectively. Year-end balances for these accounts were $120,000 and $60,000, respectively. Salesfor the year of $600,000 generated a gross profit of $200,000. Calculate the receivables and inventory turnover ratios for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Universal Calendar Company began the year with
for the year of $600,000 generated a gross profit of $200,000. Calculate the receivables and inventory turnover ratios for the year.
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