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Turnover Ratios for Accounts Receivable and Inventory
Ken's and Den's Recreational Products,Inc., reports the following information in its 2000 financial statements:
Balance (dollars in millions)
January 1, 2000
December 31, 2000
Accounts receivable (gross)
$14
$12
Allowance for uncollectible accounts
1
2
Inventory
20
26
During 2000:
Sales
80
Cost of goods sold
55
Required
Determine Ken's and Den's accounts receivable collection period ratio and the number of days' sales in ending inventory during 2000.
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