Benson Company shows the following data on its 2014 financial statements: Accounts receivable, January 1 $720,000 Accounts receivable, December 31 $960,000 Merchandise inventory, January 1 $900,000 Merchandise inventory, December 31 $1,020,000 Gross sales $4,800,000 Sales returns and allowances $180,000 Net sales $4,620,000 Cost of goods sold $3,360,000 Income before interest and taxes $720,000 Interest on bonds $192,000 Net income $384,000 The accounts receivable turnover is: a. 5.5 times per year. b. $840,000; Accounts receivable turnover: $4,620,000/$840,000 = 5.5. c. 5 times per year. d. 6.667 times per year. e. 5.714 times per year.

Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?

On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.

Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?