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Following Select Information Is Taken from Mercury Corp Instructions
from the Above Information, to One Decimal, Calculate the Financial

Question 52

Essay

following select information is taken from Mercury Corp.'s statements of financial position at December 31, 2019 and 2020, and their income statement for calendar 2020: 20202019 Accounts receivable 570,000480,000 Inventory 195,000217,500Total assets $2,700,000$2,475,000Net income $315,000 Net Sales (all on credit).2,700,000Cost of goods sold. 1,050,000\begin{array}{llr}&2020&2019\\ \text { Accounts receivable } &570,000&480,000\\ \text { Inventory } &195,000&217,500\\ \text {Total assets } &\$2,700,000&\$2,475,000\\\\ \text {Net income } &\$315,000\\ \text { Net Sales (all on credit).} &2,700,000\\ \text {Cost of goods sold. } &1,050,000\\\end{array}
Instructions
From the above information, to one decimal, calculate the following for 2020:
a) Inventory turnover
b) Receivables turnover
c) Asset turnover

Correct Answer:

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a) Inventory turnover (cost of goods sol...

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