The following financial information was taken from a firm's accounting records for 2013. Use this information to determine the items below. $\begin{array}{lrr}
& \text { Jan. 1 } & {\text { Dec. } 31} \
\text { Accounts Receivable } & \$ 285,000 & \$ 418,000 \
\text { Merchandise Inventory } & 375,000 & 425,000 \
\text { Net Credit Sales } & & 3,200,000 \
\text { Gross Profit on Sales } & & 2,200,000
\end{array}$ (1) Inventory turnover.
(2) Accounts receivable turnover.
(3) Average collection period of accounts receivable.

Question

The following financial information was taken from a firm's accounting records for 2013. Use this information to determine the items below. $\begin{array}{lrr} 
& \text { Jan. 1 } & {\text { Dec. } 31} \
\text { Accounts Receivable } & \$ 285,000 & \$ 418,000 \
\text { Merchandise Inventory } & 375,000 & 425,000 \
\text { Net Credit Sales } & & 3,200,000 \
\text { Gross Profit on Sales } & & 2,200,000
\end{array}$ (1) Inventory turnover.
(2) Accounts receivable turnover.
(3) Average collection period of accounts receivable.

Quizplus · Accepted Answer

The Answer of The following financial information was taken from a firm's accounting records for 2013. Use this information to determine the items below. $\begin{array}{lrr} 
& \text { Jan. 1 } & {\text { Dec. } 31} \
\text { Accounts Receivable } & \$ 285,000 & \$ 418,000 \
\text { Merchandise Inventory } & 375,000 & 425,000 \
\text { Net Credit Sales } & & 3,200,000 \
\text { Gross Profit on Sales } & & 2,200,000
\end{array}$ (1) Inventory turnover.
(2) Accounts receivable turnover.
(3) Average collection period of accounts receivable.

The Following Financial Information Was Taken from a Firm's Accounting