Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 11, Problem 11.2ME
Calculate activity measures The following information was available for the year ended December 31, 2016:
| Net sales | $365,000 |
| Cost of goods sold | 292,000 |
| Average accounts receivable for the year | 14,600 |
| Accounts receivable at year-end | 16,000 |
| Average inventory for the year | 73,ooo |
| Inventory at year-end | 78,400 |
Required:
- Calculate the inventory turnover for 2016.
- Calculate the number of days’ sales in inventory for 2016, using year-end inventories.
- Calculate the accounts receivable turnover for 2016.
- Calculate the number of days’ sales in accounts receivable for 2016, using year-end accounts receivable.
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Chapter 11 Solutions
Accounting: What the Numbers Mean
Ch. 11 - Prob. 11.1MECh. 11 - Calculate activity measures The following...Ch. 11 - Prob. 11.3MECh. 11 - Prob. 11.4MECh. 11 - Prob. 11.5ECh. 11 - Exercise 11.6 Obtain an annual report and discuss...Ch. 11 - Exercise 11.7 Effect of transactions on various...Ch. 11 - Prob. 11.8ECh. 11 - Prob. 11.9PCh. 11 - Problem 11.10 LQ 9 Prepare a common size balance...
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