SQB Corporation reports sales of $10,000,000 for Year 2, with a gross profit margin of 40%. 20% of SQB's sales are on credit.
|
|
Year 1
|
Year 2
|
|
Accounts receivable
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$ 150,000
|
$ 170,000
|
|
Inventory
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900,000
|
1,000,000
|
|
Accounts payable
|
1,100,000
|
1,200,000
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Requirements:
1. Accounts receivable days outstanding at the end of Year 2 is (use year-end receivable balance and 360 days in a year):
2. Accounts payable days outstanding at the end of Year 2 is (use average accounts payable for the year and 360 days in a year):
3. Days' sales in inventory at the end of Year 2 is (use year-end inventory amount and 360 days in a year)