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Problem #2 (Adapted) The following selected data were taken from the records of Delta Company: Beginning Ending Accounts P60,000 P40,000 Receivable - net 55,000 65,000 Inventory Sales (all on credit) 600,000 Cost of Goods Sold 360,000 Required: A. Compute the following ratios. Show your solution. 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Days sales in inventory Delta's credit term is 2/10, n/30. The industry average inventory turnover is 8 times. Comments on Delta's efficiency in managing its accounts receivable and inventory. В.

Problem #2 (Adapted) The following selected data were taken from the records of Delta Company: Beginning Ending Accounts P60,000 P40,000 Receivable - net 55,000 65,000 Inventory Sales (all on credit) 600,000 Cost of Goods Sold 360,000 Required: A. Compute the following ratios. Show your solution. 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Days sales in inventory Delta's credit term is 2/10, n/30. The industry average inventory turnover is 8 times. Comments on Delta's efficiency in managing its accounts receivable and inventory. В.

Managerial Accounting: The Cornerstone of Business Decision-Making
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 44E: Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note:...
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Problem #2 (Adapted) The following selected data were taken from the records of Delta Company: Beginning Ending Accounts Р60,000 P40,000 Receivable - net 55,000 65,000 Inventory Sales (all on credit) 600,000 Cost of Goods Sold 360,000 Required: A. Compute the following ratios. Show your solution. 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Days sales in inventory Delta's credit term is 2/10, n/30. The industry average inventory turnover is 8 times. Comments on Delta's efficiency in managing its accounts receivable and inventory. В.
Transcribed Image Text:Problem #2 (Adapted) The following selected data were taken from the records of Delta Company: Beginning Ending Accounts Р60,000 P40,000 Receivable - net 55,000 65,000 Inventory Sales (all on credit) 600,000 Cost of Goods Sold 360,000 Required: A. Compute the following ratios. Show your solution. 1. Accounts receivable turnover 2. Average collection period 3. Inventory turnover 4. Days sales in inventory Delta's credit term is 2/10, n/30. The industry average inventory turnover is 8 times. Comments on Delta's efficiency in managing its accounts receivable and inventory. В.
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