(Calculation of Ratios) Jones and Calenti Retail Stationery sells its products to other businesses. It has provided the following information:
|
Sales |
$1,200,000 |
|
Cost of sales |
450,000 |
|
Inventory at end of year |
200,000 |
|
Accounts receivable at end of year |
200,000 |
|
Accounts payable at end of year |
100,000 |
Using 250 days as the number of days the business is open, calculate
- Days” sales outstanding
- Inventory turnover
- Days” purchases outstanding