Calculate the accounts receivable turnover

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Question - The following information is available for Mechanical Engineering, Inc.:

20X5 Sales (all credit) $4,200,000

Jan. 1, 20X5 Accounts receivable $810,000

Dec. 31, 20X5 Accounts receivable $840,000

20X5 Cost of goods sold $2,550,000

Jan. 1, 20X5 Inventory $270,000

Dec. 31, 20X5 Inventory $250,000

Jan. 1, 20X5 Accounts payable $540,000

Dec. 31, 20X5 Accounts payable $560,000

Required - Based on the information provided, calculate the following ratios:

a) Inventory turnover.

b) Average days of sale in inventory.

c) Accounts receivable turnover.

d) Average collection period.

e) Operating cycle.

f) Account payable turnover.

g) Day's payable.

h) Conversion cycle.

Reference no: EM132784933

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