Question - Computation and evaluation of activity ratios. The following data relate to Alaska Products, Inc:
|
20X5
|
20X4
|
|
Net credit sales
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$832,000
|
$760,000
|
|
Cost of goods sold
|
530,000
|
400,000
|
|
Cash, Dec. 31
|
125,000
|
110,000
|
|
Average Accounts receivable
|
205,000
|
156,000
|
|
Average Inventory
|
70,000
|
50,000
|
|
Accounts payable, Dec. 31
|
115,000
|
108,000
|
Instructions - Compute the accounts receivable and inventory turnover ratios for 20X5. Alaska rounds all calculations to two decimal places.