A national firm has sales of $729,000 and cost of goods sold of $478,000. At the beginning of the year, the inventory was $37,000

A national firm has sales of $729,000 and cost of goods sold of $478,000. At the beginning of the year, the inventory was $37,000. At the end of the year, the inventory balance was $41,000. What is the inventory turnover rate?    A.  12.26 times B.  12.78 times C.  14.22 times D.  18.56 times E.  19.70 times Inventory turnover = $478,000/[($37,000 + $41,000)/2] = 12.26 times

61.

North Side Wholesalers has sales of $948,000. The cost of goods sold is equal to 68 percent of sales. The firm has an average inventory of $23,000. How many days on average does it take the firm to sell its inventory?    A.  12.30 days B.  13.02 days C.  16.48 days D.  26.35 days E.  29.68 days Inventory turnover = ($948,000 × 0.68)/$23,000 = 28.027826 Inventory period = 365/28.027826 = 13.02 days

62.

The Bear Rug has sales of $811,000. The cost of goods sold is equal to 63 percent of sales. The beginning accounts receivable balance is $41,000 and the ending accounts receivable balance is $38,000. How long on average does it take the firm to collect its receivables?    A.  17.26 days B.  17.78 days C.  18.58 days D.  20.44 days E.  29.77 days Receivables turnover = $811,000/[($41,000 + $38,000)/2] = 20.53165 Receivables period = 365/20.53165 = 17.78 Days

63.

The Blue Star has sales of $387,000, costs of goods sold of $259,000, average accounts receivable of $12,100, and average accounts payable of $12,600. How long does it take for the firm's credit customers to pay for their purchases?    A.  7.67 days B.  9.24 days C.  11.41 days D.  11.88 days E.  13.81 days Receivables turnover = $387,000/$12,100 = 13.983471 Receivables period = 365/13.983471 = 11.41 days