Calculate the average collection period

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Reference no: EM131837551

Question: Lendell Company has these comparative balance sheet data:

Additional information for 2017:

1. Net income was $25,000.

2. Sales on account were $375,000. Sales returns and allowances amounted to $25,000.

3. Cost of goods sold was $198,000.

4. Net cash provided by operating activities was $48,000.

5. Capital expenditures were $25,000, and cash dividends were $10,000.

Instructions: Compute the following ratios at December 31, 2017.

(a) Current ratio.

(b) Accounts receivable turnover.

(d) Inventory turnover.

(e) Days in inventory.

(f) Free cash flow.

Reference no: EM131837551

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