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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
النسخة 4الرقم المعياري الدولي: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
النسخة 4الرقم المعياري الدولي: 978-0078025372 تمرين 10
Computing and Interpreting Selected Liquidity Ratios
Double West Suppliers (DWS) reported sales for the year of $300,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances follow:
Required:
1. Compute the turnover ratios for accounts receivable and inventory (round to one decimal place).
2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory (round to one decimal place).
3. Explain what each of these ratios and measures mean for DWS.
Double West Suppliers (DWS) reported sales for the year of $300,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances follow:
Required:
1. Compute the turnover ratios for accounts receivable and inventory (round to one decimal place).
2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory (round to one decimal place).
3. Explain what each of these ratios and measures mean for DWS.
التوضيح
موثّق
موثّق
1)
Prepare inventory turnover and accou...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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