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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Nelson Paints
Selected Income Statement Items, 2018
Cash Sales
$2,500,000
$9,500,000
$12,000,000
$7,000,000
Credit Sales
Total Sales
COGS
Nelson Paints
Selected Balance Sheet Accounts
12/31/2018
12/31/17
Change
$150,000
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?
Transcribed Image Text:Nelson Paints Selected Income Statement Items, 2018 Cash Sales $2,500,000 $9,500,000 $12,000,000 $7,000,000 Credit Sales Total Sales COGS Nelson Paints Selected Balance Sheet Accounts 12/31/2018 12/31/17 Change $150,000 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?
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