2A2M LOWELL CORPORATION HAS DECIDED TO INCLUDE CERTAIN FINANCIAL RATI...

52.

CSO: 2A2c

LOS: 2A2m

Lowell Corporation has decided to include certain financial ratios in its year-end annual

report to shareholders. Selected information relating to its most recent fiscal year is

provided below.

• Cash

$ 10,000

• Accounts receivable (end of year)

20,000

• Accounts receivable (beginning of year)

24,000

• Inventory (end of year)

30,000

• Inventory (beginning of year)

26,000

• Notes payable (due in 90 days)

25,000

• Bonds payable (due in 10 years)

35,000

• Net credit sales for year

220,000

• Cost of goods sold

140,000

Using a 365-day year, compute Lowell’s accounts receivable turnover in days.

a.

26.1 days.

b.

33.2 days.

c.

36.5 days.

d.

39.8 days.