Question

18) Calculate the accounts receivable (A/R) turnover from the data below.

Sales $4,000,000, beginning A/R $ $250,000, Ending A/R $150,000. Show your work and watch your decimals. Properly label your answer.

19) Calculate the number of days in sales in Inventory from the data below:

Beginning Inventory $1,800,000, Ending Inventory $600,000, Average daily cost of Goods sold $12,000. Show your work and watch your decimals. Properly label your answer.

Answer 1

Please find below table useful to compute desired results: -

B 1 Sales 4000000 2 Beginning Accounts Receivables 250000 3 Ending Accounts Receivables 150000 4 Average accounts Receivable =(B2+B3)/2 5 Accounts Receivable turnover =B1/B4 6 7 Beginning Inventory 1800000 8 Ending Inventory 600000 9 Average daily cost of goods sold 12000 10 Average Inventory =B7+B8)/2 11 Number of days in sales inventory 1=B10/B9

End results would be as follows: -

4,000,000 250,000 150,000 200,000 20 1 Sales 2 Beginning Accounts Receivables 3 Ending Accounts Receivables 4 Average accounts Receivable 5 Accounts Receivable turnover 6 7 Beginning Inventory 8 Ending Inventory 9 Average daily cost of goods sold 10 Average Inventory 11 Number of days in sales inventory 1,800,000 600,000 12,000 1,200,000 100