For its most recent year a company had Sales (all on credit) of $830,000 and...
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Finance
For its most recent year a company had Sales (all on credit) of $830,000 and Cost of Goods Sold of $525,000. At the beginning of the year its Accounts Receivable were $80,000 and its Inventory was $100,000. At the end of the year its Accounts Receivable were $86,000 and its Inventory was $110,000.
2b. For its most recent year a company had Sales (all on credit) of $830,000 and Cost of Goods Sold of $525,000. At the beginning of the year its Accounts Receivable were $80,000 and its Inventory was $100,000. At the end of the year its Accounts Receivable were $86,000 and its Inventory was $110,000. Required: Using the above information, estimate the followings: i) Average accounts receivable for the year. ii) Average inventory for the year. iii) Accounts receivable turnover ratio for the year. iv) Inventory turnover ratio for the year. V) Average days of sales for Accounts Receivable during the year
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