A) Wage Garnishers, Inc. has sales for the year of $50,300 and cost of goods sol
ID: 2623936 • Letter: A
Question
A)
Wage Garnishers, Inc. has sales for the year of $50,300 and cost of goods sold of $23,700. The firm carries an average inventory of $4,800 and has an average accounts payable balance of $4,400. What is the inventory period?
81.36 days
B)
Jennifer has annual sales of $367,200 and cost of goods sold of $198,600. The average accounts receivable balance is $20,400. How many days on average does it take the firm to collect its accounts receivable?
12.39 days 18.68 days 31.29 days 73.92 days81.36 days
B)
Jennifer has annual sales of $367,200 and cost of goods sold of $198,600. The average accounts receivable balance is $20,400. How many days on average does it take the firm to collect its accounts receivable?
16.08 days 16.30 days 17.27 days 18.00 days 20.28 daysExplanation / Answer
A. Inventory period = 365*Avg inventory / Cost of good sold = 365*4800/23700 = 73.92 days
B. Accounts receivable collection period = 365*Avg accounts receivable / Sales = 365*20400 / 367200 = 20.28 days
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.