The inventory and sales data for this year for G. Rabbit Company are as follows:
|
End of Year |
Beginning 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 G. Rabbit Company, compute the following:
a. The accounts receivable turnover in days
b. The inventory turnover in days
c. The operating cycle