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B-16.03 Problem - 1,850,000 Cost of goods sold 1,775,000(a...

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B-16.03 Stanley Corporation has no material problem with uncollectible accounts or obsolete inventory. All sales and purchases are on account. The company provided the following information for the year ending 20X7: Total sales $ 2,600,000 Beginning accounts receivable 700,000 Total purchases of inventory 1,800,000 Beginning inventory 50,000 Collections on accounts receivable 2,400,000 Payments on accounts payable
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Unformatted text preview: 1,850,000 Cost of goods sold 1,775,000 (a) Calculate the "accounts receivable turnover ratio." (a) Calculate the "inventory turnover ratio." (c) If Stanley's competitors have a receivables turnover ratio of "6" and an inventory turnover ratio of "4," would you initially conclude that Stanley is better or worse than its competitors in managing receivables and inventory?...
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