Accounts Receivable Turnover And Inventory Turnover 548741

Selected balances from a company’s financial statements are shown below. Calculate the following:

(a) accounts receivable turnover

(b) inventory turnover

(c) days’ sales uncollected

(d) days’ sales in inventory

(e) profit margin.

(f) return on total assets.

Accounts Receivable ………………….. 27,000 $24,000
Merchandise inventory………………… 25,000 20,000
Total Assets……………………………. 296,000 244,000
Accounts Payable……………………… 26,000 32,000
Salaries Payable……………………….. 3,000 4,400
Sales (all on credit)……………………… $312,000
Cost of goods sold……………………… 165,600
Salaries expense……………………….. 48,000
Other expenses………………………… 75,000
Net Income…………………………….. 24,000″