Computation and evaluation of activity ratios. The following data relate to Alaska Products, Inc:
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19X5
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19X4
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Net credit sales
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$832,000
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$760,000
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|
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Cost of goods sold
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440,000
|
350,000
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|
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Cash, Dec. 31
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125,000
|
110,000
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|
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Average Accounts receivable
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180,000
|
140,000
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|
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Average Inventory
|
70,000
|
50,000
|
|
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Accounts payable, Dec. 31
|
115,000
|
108,000
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|
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- Compute the accounts receivable and inventory turnover ratios for 19X5. Alaska rounds all calculations to two decimal places.