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For its most recent year a company had Sales (all on credit) of P830,000 and Cost of Goods Sold of P525,000. At the beginning of the year its Accounts Receivable were P80,000 and its Inventory was P100,000. At the end of the year its Accounts Receivable were P86,000 and its Inventory was P110,000.
Problem 1: Compute the inventory turnover ratio for the year.
Problem 2: Compute for the accounts receivable turnover ratio for the year.
Problem 3: On average, how many days Accounts Receivable is collected during the year?
Problem 4: On average, how many days inventory is sold during the year?
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