Answer:Inventory turnover = 3.50 Times
Number of days sales in inventory= 94.5 Days
Accounts Receivable Turnover = 21.5 Times
Number of days sales in accounts receivable =12.5 days
Explanation:
a) Inventory turnover = Cost of goods sold / Average inventory
$609,550 / $174,000 = 3.50 Times
b)Number of days sales in inventory = inventory at year end / Cost of goods sold x 365
$157,800 / $609,550 x 365 = 94.49≈94.5 Days
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c)Accounts Receivable Turnover = Net sales / Average accounts Receivable for the year
$857,750/$39,900 = 21.49≈ 21.5 Times
d)Number of days sales in accounts receivable = end of year Accounts Receivable / Net credit sales x 365
$29,400 / $857,750 x 365 = 12.51 ≈ 12.5 days
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