Procter & Gamble is a multinational corporation that manufactures and markets many products that you use every day. In 2010, sales for the company were $80,938 (all amounts in millions). The annual report did not report the amount of credit sales, so we will assume that all sales were on credit. The average gross profit percentage was 52 percent. Account balances follow:
|
Beginning |
Ending |
| Accounts receivable (net) |
$ |
5,936 |
|
$ |
5,435 |
|
| Inventory |
|
6,980 |
|
|
6,484 |
|
|
| Required: |
| 1. |
Compute the following turnover ratios. (Do not round intermediate calculations. Round your final answers to 1 decimal place.)
|
| 2. |
By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. (Round your answers to 1 decimal place.)
|