Winnipeg Corporation has issued common shares only. The company produces and sells down-filled winter coats and has credit terms of net 30. Winnipeg has been successful and has a gross profit margin of 20%. The information shown below was taken from the company's financial statements: Beginning inventory........................................ $ 482.000
$~~$Purchases ..................................................... 4,146,000
$~~$Ending invent ory ......................................... ?
$~~$Aver age accounts receivable ........................ 700,000
$~~$Aver age shareholders' equity ........................ 3,500,000
$~~$Sales (all on credit) ........................................ 5,110,000
$~~$Profit .............................................................. 420,000 Instructions
Calculate and comment on the following:
a) Receivables turnover and the collection period.
b) The inventory turnover and the days sales in inventory.
c) Return on equity.

Question

Winnipeg Corporation has issued common shares only. The company produces and sells down-filled winter coats and has credit terms of net 30. Winnipeg has been successful and has a gross profit margin of 20%. The information shown below was taken from the company's financial statements: Beginning inventory........................................ $ 482.000
$~~$Purchases ..................................................... 4,146,000
$~~$Ending invent ory ......................................... ?
$~~$Aver age accounts receivable ........................ 700,000
$~~$Aver age shareholders' equity ........................ 3,500,000
$~~$Sales (all on credit) ........................................ 5,110,000
$~~$Profit .............................................................. 420,000 Instructions
Calculate and comment on the following: 
a) Receivables turnover and the collection period.
b) The inventory turnover and the days sales in inventory.
c) Return on equity.

Quizplus · Accepted Answer

The Answer of Winnipeg Corporation has issued common shares only. The company produces and sells down-filled winter coats and has credit terms of net 30. Winnipeg has been successful and has a gross profit margin of 20%. The information shown below was taken from the company's financial statements: Beginning inventory........................................ $ 482.000
$~~$Purchases ..................................................... 4,146,000
$~~$Ending invent ory ......................................... ?
$~~$Aver age accounts receivable ........................ 700,000
$~~$Aver age shareholders' equity ........................ 3,500,000
$~~$Sales (all on credit) ........................................ 5,110,000
$~~$Profit .............................................................. 420,000 Instructions
Calculate and comment on the following: 
a) Receivables turnover and the collection period.
b) The inventory turnover and the days sales in inventory.
c) Return on equity.

Winnipeg Corporation Has Issued Common Shares Only ~~ Purchases ~~ Ending Invent Ory

Winnipeg Corporation Has Issued Common Shares Only $$ Purchases $$ Ending Invent Ory