Ask Question
1 May, 20:35

The following information was available for the year ended December 31, 2019: Net sales $ 894,250 Cost of goods sold 616,850 Average accounts receivable for the year 40,650 Accounts receivable at year-end 28,200 Average inventory for the year 182,000 Inventory at year-end 158,000 Required: Calculate the inventory turnover for 2019. (Round your answer to 2 decimal places.) Calculate the number of days' sales in inventory for 2019, using year-end inventories. (Use 365 days a year. Round your answer to 1 decimal place.) Calculate the accounts receivable turnover for 2019. (Round your answer to 1 decimal place.) Calculate the number of days' sales in accounts receivable for 2019, using year-end accounts receivable. (Use 365 days a year. Round your answer to 1 decimal place.)

+1
Answers (1)
  1. 1 May, 22:41
    0
    Net sales - $894,250

    Cost of Goods - $ 616850

    Average account receivable - $40,650

    Account receivable at year end - $28200

    Average inventory - $182000

    Inventory at year end - $158,000

    Inventory turn over

    Cost of Goods sold / Average inventory for the period

    616850/182000 = 3.40 times

    No of days sales in inventory = Ending inventory / Cost of Goods sold * 365

    158000/616850*365 = 93.5 days

    Account receivable turnover = net credit sale / average receivable

    894250/40650=21.9

    No of days sales in account receivable -

    Receivable at year end/total credit sales*365

    28200/894250*365 = 11.5 days
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The following information was available for the year ended December 31, 2019: Net sales $ 894,250 Cost of goods sold 616,850 Average ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers