What is the average length of time

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Reference no: EM133164132

Question - The following financial information is for Ambroise Industries Inc.:

 

2020

2019

Sales

$5,000,000

$4,500,000

Cost of goods sold

2,250,000

2,025,000

Accounts receivable

585,500

558,800

Inventory

770,800

707,400

Accounts payable

200,750

195,250

Total assets

1,875,200

1,690,500

Ambroise is a distributor of auto parts operating in eastern Ontario that offers 30-day terms and has all sales on credit. The company has a large inventory due to the number of parts it stocks for different makes and models of cars. Most of its suppliers offer terms of 30 days, and Ambroise tries to stay on good terms with its suppliers by paying on time.

Required -

1. What is the average time it takes Ambroise to collect its accounts receivable?

2. What is the average length of time that it takes Ambroise to sell through its inventory?

Reference no: EM133164132

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