Procter & Gamble is a multinational corporation that manufactures and markets many household products. Last year, sales for the company were $83,062 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that 90 percent of sales were on credit. The average gross profit on sales was 49 percent. Additional account balances were: Accounts receivable (net) Inventory Ending Beginning $6,386 $6,508 6,759 6,909 Required: Compute Procter & Gamble's receivables turnover ratio and its inventory tumover ratio. On average, how many days does it take for the company to collect its accounts receivable and sell its inventory? Complete this question by entering your answers in the tabs below
Procter & Gamble is a multinational corporation that manufactures and markets many household products. Last year, sales for the company were $83,062 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that 90 percent of sales were on credit. The average gross profit on sales was 49 percent. Additional account balances were: Accounts receivable (net) Inventory Ending Beginning $6,386 $6,508 6,759 6,909 Required: Compute Procter & Gamble's receivables turnover ratio and its inventory tumover ratio. On average, how many days does it take for the company to collect its accounts receivable and sell its inventory? Complete this question by entering your answers in the tabs below
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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