Prepare the accounts receivable turnover

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A company reported the following information for last year.

Sales, $1,081,600 (all on account)

Cost of goods sold, $633,600
Gross profit, $448,000
Accounts receivable, beginning of year, $94,000
Accounts receivable, end of year, $114,000
Merchandise inventory, beginning of year, $59,000
Merchandise inventory, end of year, $69,000.

Problem 1: Based on these balances, compute: prepare the tables below

  • The accounts receivable turnover.
  • The inventory turnover.

Reference no: EM132674292

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