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nadya68 [22]
3 years ago
11

Double West Suppliers (DWS) reported sales for the year of $400,000, all on credit. The average gross profit percentage was 35 p

ercent on sales. Account balances follow:
Beginning Ending
Accounts receivable (net) $ 51,000 $ 61,000
Inventory 67,000 46,000
Required:
1. Compute the following turnover ratios. (Round your answers to 1 decimal place.)
2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. (Use 365 days in a year. Do not round intermediate calculations. Round turnover ratio calculation and final answers to 1 decimal place.)
Business
1 answer:
erastovalidia [21]3 years ago
6 0

Answer:

1. Accounts Receivables Turnover Ratio = Net Credit Sales/Average Accounts Receivables = 400,000 / (51000 + 61000)/2

= 400,000/56,000

= 7.1 times

Inventory Turnover Ratio = Cost of Goods Sold/Average Inventory = (Sales-Gross Profit)/Average Inventory = (400,000 - 35% * 400,000) / (67000 + 46000)/2

=400,000 - 140,000 / 56,500

= 260,000 / 56,500

= 4.6 times

2. Average Days to Collect Receivables = 365/7.1 = 51.40 or 52 days

Average Days to Collect Inventory = 365/4.6 = 79.34 days

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Answer:

A) a reduction of the carrying value of the investment

Explanation:

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ABC Mechanics charges an estimate fee of $100 plus $40 per hour, x, in labor. XYZ Mechanics charges an estimate fee of $65 plus
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Answer:

5 hours  would work! Hope it helps!

Explanation:

100 off top!

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250 plus 65 is 315 !

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Answer:

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