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.