Question - The following financial information is for Alpha Corporation are for the fiscal years ending 2017 & 2016 (all balances are normal):
| Item/Account |
2017 |
2016 |
| Cash |
$26,000 |
$16,000 |
| Accounts Receivable |
40,000 |
50,000 |
| Inventory |
30,000 |
22,000 |
| Current Liabilities |
76,000 |
42,000 |
| Net Sales (all credit) |
390,000 |
360,000 |
| Cost of Goods Sold |
260,000 |
250,000 |
Use this information to determine for FY 2017: (Round & enter your answers to one decimal place and enter the value.) show work!
1. the Accounts Receivable turnover ratio
2. Average Accounts Receivable collection period
3. Gross Profit Margin