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Unformatted text preview:34 days. (2) Accounts receivable turnover = Net Annual Credit Sales/Accounts Receivable = 1,685,000 / 350,000 = 4,81 turns Average days to receive accounts receivable = 365 days /Accounts receivable turnover ratio = 365 / 4,81 = 76 days. Answer: Inventory turnover (turns): Cost of goods sold divided by average inventory balance 980,000/90,000 = 10.88 turns Inventory turnover (days): 365 divided by number of inventory turns 365/10.88 = 33.54 (33 days or 34 days, either answer is correct) Accounts receivable turnover (turns): Net credit sales divided by average accounts receivable balance 1,685,000/350,000 = 4.81 turns Running head: Leadership Development & Personal Effectiveness 1 Accounts receivable turnover (days): 365 divided by number of accounts receivable turns 365/4.81 = 75.88 (75 days or 76 days, either answer is correct)