Diamond Systems manufactures and markets many products you use every day. In 2019, sales for...
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Diamond Systems manufactures and markets many products you use every day. In 2019, sales for the company were $90,000 (all amounts in millions). The annual report did not report the amount of credit sales, so we will assume that all sales were on credit. The average gross profit percentage was 50.6 percent. Account balances for the year follow: Accounts receivable (net) Inventory Beginning $ 5,900 6,680 Ending $ 6,300 6,700 Required: 1. Compute the turnover ratios for accounts receivable and inventory. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the turnover ratios for accounts receivable and inventory. (Do not round intermediate calculations. Round your final answers to 1 decimal place.) Receivables Turnover Ratio Inventory Turnover Ratio
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