Question

Bernstein Inc. Bernstein Inc. is a local retailer. The following selected information is available from their 2011 and 2012 financial statements Accounts receivable at 12/31/11 Accounts receivable at 12/31/12 $ 160,000 240,000 Inventory at 12/31/11 Inventory at 12/31/12 300 000 360,000 Net credit sales for 2012 Cost of goods sold for 2012 Net income for 2012 3,400,000 1,980,000 1,000,000 Refer to the Bernstein Inc, information above. What was Bernstein's number of days sales in receivables for 2012? (round to two decimal places) 21.47 days 42.94 days 73.00 days 146.00 days QUESTION 5 5 points s Bernstein Inc. Bernstein Inc. is a local retailer. The following selected information is available from their 2011 and 2012 financial statements: Accounts receivable at 12/31/11 Accounts receivable at 12/31/12 $ 160,000 240.000 Inventory at 12/31/11 Inventory at 12/31/12 300,000 360,000 Net credit sales for 2012 Cost of goods sold for 2012 Net income for 2012 3,400,000 1,980 000 1,000,000 Refer to the Bernstein Inc. information above. What was Berstein's inventory turnover ratio for 2012? (round to two decimal places) 03.03 1.52 6.00 3.00

Answer 1

4. Accounts Recievable turnover = Sales/Average accounts receivables

= 3,400,000/[(160,000+240,00)/2]

= 17 times

Day's sales in receivables = 365/Accounts Receivable Turnover

= 365/17

= 21.47

Option A is the answer

.

5. Inventory Turnover = Cost of Goods Sold/Average inventory

= 1,980,000/[(300,000+360,000)/2]

= 6

Option C is the answer