Question: 1. Universal Sports Supply began the year with an accounts receivable balance of $100,000 and a year-end balance of $120,000. Credit sales of $600,000 generate a gross profit of $200,000. Calculate the receivables turnover ratio for the year.
2. Universal Sports Supply began the year with an inventory balance of $80,000 and a year-end balance of $60,000. Sales of $600,000 generate a gross profit of $200,000. Calculate the inventory turnover ratio for the year.