Receivables turnover and the average collection period


Winter corporation has issued common stock only. The company has been successful and has a gross profit of 20%. The information show below was taken from the company's financial statements.

beginning inventory $482,000
Purchases $5,636,000
ending inventory ?
average accounts receivable $700,00
average common stockholder's equity 3/5/000
sales(all on credit 7,000,000
net income 525,000

Compute the following:

a. receivables turnover and the average collection period.

b. inventory turnover and the days in inventory.

c. return on common stockholders' equity.

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Accounting Basics: Receivables turnover and the average collection period
Reference No:- TGS064545

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