Question - Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances are normal):
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Alpha Company December 31
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Accounts
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2016
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2015
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Accounts Receivable
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$40,500
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$35,500
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Allowance for Doubtful Accounts
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2,500
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1,500
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Merchandise Inventory
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57,000
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50,000
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Office Supplies
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25,000
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20,000
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Credit Sales
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960,000
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740,000
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Sales Discounts
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10,000
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9,000
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Interest Income
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25,000
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20,000
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Cost of Goods Sold
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460,000
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385,000
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1. What is the FY 2016 accounts receivable turnover ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word times.
2. What is the FY 2016 days outstanding for accounts receivable ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word days.