The following information was available for the year ended December 31, 2019: Net sales $ 766,500 Cost of goods sold 591,300 Average accounts receivable for the year 37,850 Accounts receivable at year-end 31,500 Average inventory for the year 154,000 Inventory at year-end 157,150 Required: Calculate the inventory turnover for 2019. (Round your answer to 2 decimal places.) Calculate the number of days' sales in inventory for 2019, using year-end inventories. (Use 365 days a year. Round your answer to 1 decimal place.) Calculate the accounts receivable turnover for 2019. (Round your answer to 1 decimal place.) Calculate the number of days' sales in accounts receivable for 2019, using year-end accounts receivable. (Use 365 days a year. Round your answer to 1 decimal place.)

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mltn1980 mltn1980 · Answer 1 · 2019-11-23T22:18:23+01:00

Answer:

INVENTORY TURNOVER 3,84

Calculate the number of days' sales in inventory for 2019, using year-end inventories.

N° of days' sales in Inventory 97,0

Accounts Receivable Turnover 20,3

Calculate the number of days' sales in accounts receivable for 2019, using year-end accounts receivable.

N° of days' sales in Acc. Receivable 24,3

Explanation:

December 31, 2019

Net sales $ 766,500

Cost of goods $ 591,300

Average accounts receivable $ 37,850

Accounts receivable at year-end $ 31,500

Average inventory for the year $ 154,000

Inventory at year-end $ 157,150

INVENTORY TURNOVER 3,84 = $591,300/$154,000

Cost Of Goods $591,300

Average Inventory $154,000

N° of days' sales in Inventory 97,0 = 365/($591,300/$157,500)

Days a Year 365

Cost Of Goods 591.300

Inventory at year-end 157.150

Accounts Receivable Turnover 20,3 = $766,500/$37,850

Net sales 766,500

Average accounts receivable 37,850

N° of days' sales in Acc. Receivable 15,0 = 365/($766,500/$31,500)

Days a Year 365

Net sales 766.500

Accounts receivable at year-end 31.500