Eagle Paints
Selected Income Statement Items,2014
Cash Sales $2,500,000
Credit Sales $9,500,000
Total Sales $12,000,000
COGS $7,000,000
Eagle Paints
Selected Balance Sheet Accounts
12/31/2014 12/31/13 Change
Accounts Receivable $550,000 $400,000 $150,000
Inventory $275,000 $250,000 $25,000
Accounts Payable $150,000 $110,000 $40,000
Using the information provided,what is the inventory turnover for Eagle Paints? What is the average production cycle for the firm? What is the average collection cycle? What could Eagle Paints do to reduce the average collection cycle?

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The Answer of Eagle Paints
Selected Income Statement Items,2014
Cash Sales $2,500,000
Credit Sales $9,500,000
Total Sales $12,000,000
COGS $7,000,000
Eagle Paints
Selected Balance Sheet Accounts
12/31/2014 12/31/13 Change
Accounts Receivable $550,000 $400,000 $150,000
Inventory $275,000 $250,000 $25,000
Accounts Payable $150,000 $110,000 $40,000
Using the information provided,what is the inventory turnover for Eagle Paints? What is the average production cycle for the firm? What is the average collection cycle? What could Eagle Paints do to reduce the average collection cycle?

Eagle Paints Selected Income Statement Items,2014