Computation and evaluation of activity ratios. The following data relate to Alaska Products, Inc:
20X5 20X4
Net credit sales $832,000 $760,000
Cost of goods sold 530,000 400,000
Cash, Dec. 31 125,000 110,000
Average Accounts receivable 205,000 156,000
Average Inventory 70,000 50,000
Accounts payable, Dec. 31 115,000 108,000
Instructions
Compute the accounts receivable and inventory turnover ratios for 20X5. Alaska rounds all calculations to two decimal places.