The following inventory and sales data for this year for the G. Rabbit Company are:
|
End |
Beginning |
|
|
of Year |
of Year |
|
|
Net sales |
$3,150,000 |
|
|
Gross receivables |
180,000 |
$160,000 |
|
Inventory |
480,000 |
390,000 |
|
Cost of goods sold |
2,250,000 |
Required Using the above data from the G. Rabbit Company, compute:
a. The accounts receivable turnover in days
b. The inventory turnover in days
c. The operating cycle