Nelson Paints Selected Income Statement Items, 2018 Cash Sales $2,500,000 Credit Sales $9,500,000 Total Sales $12,000,000 COGS $7,000,000 Nelson Paints Selected Balance Sheet Accounts 12/31/2018 Change $150,000 12/31/17 Accounts Receivable $550,000 $400,000 Inventory Accounts Payable $250,000 $110,000 $275,000 $25,000 $150,000 $40,000 Using the information provided, what is the inventory turnover for Nelson Paints? What is the average production cycle for the firm? What is the average collection cycle? What could Nelson Paints do to reduce the average collection cycle?

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.