Compute the accounts receivable turnover

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Reference no: EM131621219

Question -

Frizell Company has the following comparative balance sheet data.

FRIZELL COMPANY Balance Sheets December 31


2017

2016

Cash

$ 14,200

$ 29,500

Accounts receivable (net)

69,400

60,000

Inventory

60,000

49,700

Plant assets (net)

197,000

180,500


$340,600

$319,700

Accounts payable

$49,400

$59,900

Mortgage payable (6%)

101,500

101,500

Common stock, $10 par

144,500

122,000

Retained earnings

45,200

36,300


$340,600

$319,700

Additional information for 2017:

1. Net income was $25,000.

2. Sales on account were $405,500. Sales returns and allowances were $20,200.

3. Cost of goods sold was $195,000.

Compute the following ratios at December 31, 2017.

(a) Current ratio

(b) Acid-test ratio

(c) Accounts receivable turnover

(d) Inventory turnover

Reference no: EM131621219

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