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Richards & James is a multinational corporation that manufactures and markets many household products. Last year, sales for the company were...

Richards & James is a multinational corporation that manufactures and markets many household products. Last year, sales for the company were $76,484 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that 80 percent of sales were on credit. The average gross profit on sales was 45 percent. Additional account balances were:


 

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Accounts receivable (net)$6,637 $5,730

Inventory 6,825  6,295 


Required:

1. Compute Richards & James receivable turnover ratio and its inventory turnover ratio. (Round intermediate calculations to the nearest whole dollar and your final answers to 2 decimal places.)

 


 

2. How many days does it take for the Company to collect its accounts receivable and sell its inventory. (Use 365 days in a year. Round your answers to 2 decimal places.)

 

Top Answer

rec turnover ratio 9.90 times inv... View the full answer

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Other Answers

Receivable Turnover Ratio = 9.895 or 9.90 Inventory Turnover Ratio = 6.41 Days to collect... View the full answer

Account Receivable turnover ratio = 9.89 times Inventory... View the full answer

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