Given below are comparative balance sheets and an income statement for the Richmond Corporation...Please see attachment for table
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(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:
<br>410000/82000 = 5. This means that accounts receivable turns over 5 times a year, or every 365/5 = 73 days.
<br>(b) Average inventory turnover is similar, but using the average inventory for the year, (64000 + ...