Solution-Compute the accounts receivable turn over

Compute the accounts receivable turn over

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Reference no: EM132234170

Question - The following selected data were taken from the records of Delta Company:

	Beginning	Ending
Accounts receivable - net	60,000	40,000
Inventory	55,000	65,000
Sales (All on credit)		600,000
Cost of goods sold		360,000

Required:

A. Compute the following ratios:

1. Accounts receivable turn over

2. Average collection period

3. Inventory turnover

4. Days sales in inventory

B. Delta's credit term is 2/10, n/30. The industry average inventory turnover is 8 times. Comment on Delta's efficiency in managing its accounts receivable and inventory.

Reference no: EM132234170

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Compute the accounts receivable turn over

Reference no: EM132234170

Reference no: EM132234170

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