Double West Suppliers (DWS) reported sales for the year of $725,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances are as follows: Accounts receivable (net) Inventory Beginning $28,000 43,000 Ending $72,000 57,000 Required: 1. Compute the turnover ratios for accounts receivable and inventory. (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio times times 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. (Round your answers to 1 decimal place.) Days to collect Days to sell Check my work

Double West Suppliers (DWS) reported sales for the year of $725,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances are as follows: Accounts receivable (net) Inventory Beginning $28,000 43,000 Ending $72,000 57,000 Required: 1. Compute the turnover ratios for accounts receivable and inventory. (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio times times 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. (Round your answers to 1 decimal place.) Days to collect Days to sell Check my work

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...

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Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
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