Calculate the inventory turnover and days sales in inventory

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Reference no: EM132695121

Question - The following selected information is available for Bradley Corporation:

Income Statement Data -

Sales $650,000

Cost of Goods Sold 425,000

Income Before Income Taxes 78,000

Net Income 54,600

Balance Sheet Data

Beginning Balance

Ending Balance

Cash

$19,500

$15,000

Accounts Receivable (net)

65,000

60,000

Inventory

71,500

64,500

Equipment (net)

195,000

183,900

Total Assets

$351,000

$323,400

Current Liabilities

$62,400

$52,700

Long-term Notes Payable

97,500

100,000

Total Liabilities

$159,900

$152,700

Required - Use the above information to calculate the following for the current year:

(a) Current ratio.

(b) Acid-test ratio.

(c) Accounts receivable turnover.

(d) Days' sales uncollected.

(e) Inventory turnover.

(f) Days' sales in inventory.

Reference no: EM132695121

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