Question

The financial information below presents selected information from the financial statements of Pelican Company. Sales revenue
b. Calculate the receivables turnover ratio for the current year. (Round your answer to 2 decimal places.) c. Calculate the d
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Answer #1

Current year prior year

a) Current ratio = Current assets /Current liabilities 8180100/6176000=1.32 8200030/7900300=1.04

b)Receivable turnover ratio= Sales/Average receivable 13300300/ 4285000*=3.10

*Average receivable =4750000+3820000/2=$4285000

c)Days to collect =No. of working days/Receivable turnover ratio

360/3.10=116 .12 days

d)Inventory turnover ratio = Cost of goods sold/Average inventory

8915195/1111900=8.01

e)Days to sell = No of working days/inventory turnover ratio

360/8.01=44.94 days

  

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