Analyzing the Impact of Selected Transactions on Receivable and Inventory Turnover - Procter & Gamble is a multinational corporation that manufactures and markets many products that are probably in your home. Last year, sales for the company were $76,476 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that 90 percent of sales were on credit. The average gross profit rate was 52 percent on sales. Account balances follow:
|
Beginning
|
Ending
|
|
Accounts receivable (net)
|
$6,629
|
$5,725
|
|
Inventory
|
6,819
|
6,291
|
Required:
Compute the turnover for the accounts receivable and inventory, the average age of receivables, and the average days' supply of inventory.