Given below are comparative balance sheets and an income statement for the Richmond Corporation...Please see attachment for table
Please see attachment for all questions
(a)The accounts receivable turnover is determined by net sales/receivables. Since they are asking for average accounts receivable turnover, you need to use the average receivables for the period, or (90000 + 74000)/2. So the ratio would be found using:
410000/82000 = 5. This means that accounts receivable turns over 5 times a year, or every 365/5 = 73 days.
(b) Average inventory turnover is similar, but using the average inventory for the year, ...
The comparative balance sheets and income statements are examined. The inventory turnover averages are determined.