Richards & James is a multinational corporation that manufactures and markets many household products. Last...
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Finance
Richards & James is a multinational corporation that manufactures and markets many household products. Last year, sales for the company were $69,000 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that 70 percent of sales were on credit. The average gross profit on sales was 48 percent. Additional account balances were:
Ending
Beginning
Accounts receivable (net)
$
7,900
$
6,400
Inventory
6,832
6,295
Required:
1. Compute Richards & James' receivable turnover ratio and its inventory turnover ratio. (Round intermediate calculations to the nearest whole dollar. Round your answers to 2 decimal places.)
Turnover
Accounts receivable
Inventory
2. How many days does it take for the company to collect its accounts receivable and sell its inventory? (Use 365 days in a year. Round your answers to 2 decimal places.)
Days
To collect accounts receivable
To sell inventory
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