Richards & James is a multinational corporation that manufactures and markets many household products. Last...
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Accounting
Richards & James is a multinational corporation that manufactures and markets many household products. Last year, sales for the company were $64,000 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that 90 percent of sales were on credit. The average gross profit on sales was 52 percent. Additional account balances were:
Ending Beginning
Accounts receivable (net) $ 7,300 $ 6,200
Inventory 6,823 6,309
Required:
1. Compute Richards & James receivable turnover ratio and its inventory turnover ratio. (Round intermediate calculations to the nearest whole dollar and your final answers to 2 decimal places.)
Turn over Ratio
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
Accounts Receivable = ?
Inventory = ?
Answer & Explanation
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