Accounts Receivable Turnover

I.Using the resources of our course materials compute the following for two years:II.  Accounts Receivable TurnoverThe formula: Net Credit Sales. If Net Credit Sales information is not available, use Sales for purposes of this assignment.Average Accounts Receivables Formula for computing Average Accounts Receivables: Beginning AR + Ending AR/2   Comment briefly interpreting your results. 10 points(b)  Day’s sales in Accounts Receivable (AR) The formula: Sales / 365 = Sales Per day Divide Accounts Receivable ending balance by sales per day. The answer: day’s sales in AR. Comment briefly interpreting your results. 10 points( c )  Inventory Turnover  Formula: Cost of Goods Sold/Average Inventory Formula for computing Average Inventory: Beginning Inventory + Ending Inventory/2         Comment briefly interpreting your results. 10 points(d)     Day’s sales in Inventory for two years.           For Inventory, Cost of Goods Sold / 365 = sales per day (at our cost).            Divide Inventory ending balance by sales per day. This answer: day’s sales in Inventory           Comment briefly interpreting your results. 10 points

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