Biology Forums - Study Force

Phelps Piping Company manufactures PVC pipe. The company has provided the following selected financial information:

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2020

2021

Accounts receivable	$   70,000	$   50,000
Inventory	90,000	70,000
Total current assets	220,000	250,000
Total assets	580,000	460,000
Current liabilities	40,000	30,000
Total liabilities	150,000	130,000
Net credit sales	300,000	360,000
Cost of goods sold	195,000	221,400
Net income	56,000	62,000

Required:

a.	What is Phelps' accounts receivable turnover for 2021?

b.	What is Phelps' gross margin percentage for 2021?

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