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Home Q & A Board Other Fields Homework Help Business Accounting
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jtfortwengler jtfortwengler
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A month ago
Phelps Piping Company manufactures PVC pipe. The company has provided the following selected financial information:

​​20202021
Accounts receivable$   70,000$   50,000
Inventory90,00070,000
Total current assets220,000250,000
Total assets580,000460,000
Current liabilities40,00030,000
Total liabilities150,000130,000
Net credit sales300,000360,000
Cost of goods sold195,000221,400
Net income56,00062,000

Required:

a.What is Phelps' accounts receivable turnover for 2021?
b.What is Phelps' gross margin percentage for 2021?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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boomers1234boomers1234
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A month ago
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More solutions for this book are available here
a.$360,000 ÷ [($50,000 + $70,000) ÷ 2] = 6.0 times
b.($360,000  ̶  $221,400) ÷ $360,000 = 38.5%
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jtfortwengler Author
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A month ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
Fanmkreyol
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Yesterday
Smart ... Thanks!
spaghetti
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2 hours ago
This site is awesome
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