Question

Double West Suppliers (DWS) reported sales for theyear of $360,000, all on credit. The average gross profitpercentage was 40 percent 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 averagedays to sell inventory. (Use 365 days in ayear. Do not round intermediate calculations. Round turnover ratiocalculation and final answers to 1 decimal place.)

 

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