You have been assigned the task of evaluating Mariano, ’s management of merchandise inventory and receivables. You decided that inventory turn-over, accounts receivable turnover, and average age of receivables statistics will prove valuable in your analysis. The following data are available from Mariano’s annual report: Merchandise Inventory Cost of Goods Sold 2 480 000 Cash Sales 1 000 000 Jan. 1 P 245 000 Total Sales 5 100 000 Dec. 31 375 000 Mariano’s Credit terms Net 30 days REQUIRED: Inventory turnover
You have been assigned the task of evaluating Mariano, ’s management of merchandise inventory and receivables. You decided that inventory turn-over,
Merchandise Inventory Cost of Goods Sold 2 480 000
Cash Sales 1 000 000
Jan. 1 P 245 000 Total Sales 5 100 000
Dec. 31 375 000 Mariano’s Credit terms Net 30 days
REQUIRED:
- Inventory turnover
- Accounts receivable turnover job in managing inventory
- Average age of receivables and receivable?
- Is Mariano doing a good job in managing inventory and receivable?
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