Calculate activity measures The following information was available for the year ended December 31, 2016:Net sales $365,000Cost of goods sold 292,000Average accounts receivable for the year 14,600Accounts receivable at year-end 16,000Average inventory for the year 73,000Inventory at year-end 78,400Required:Calculate the inventory turnover for 2016.Calculate the number of days’ sales in inventory for 2016, using year-end inventories.Calculate the accounts receivable turnover for 2016.Calculate the number of days’ sales in accounts receivable for 2016, using year-end accounts receivable.
Calculate activity measures The following information was available for the year ended December 31, 2016:Net sales $365,000Cost of goods sold 292,000Average accounts receivable for the year 14,600Accounts receivable at year-end 16,000Average inventory for the year 73,000Inventory at year-end 78,400Required:Calculate the inventory turnover for 2016.Calculate the number of days’ sales in inventory for 2016, using year-end inventories.Calculate the accounts receivable turnover for 2016.Calculate the number of days’ sales in accounts receivable for 2016, using year-end accounts receivable.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 11E
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Question
Calculate activity measures The following information was available for the year ended December 31, 2016:
Net sales $365,000
Cost of goods sold 292,000
Average accounts receivable for the year 14,600
Accounts receivable at year-end 16,000
Average inventory for the year 73,000
Inventory at year-end 78,400
Required:
Calculate the inventory turnover for 2016.
Calculate the number of days’ sales in inventory for 2016, using year-end inventories.
Calculate the accounts receivable turnover for 2016.
Calculate the number of days’ sales in accounts receivable for 2016, using year-end accounts receivable.
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