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Home Q & A Board Other Fields Homework Help Business Accounting
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ang359 ang359
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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
Inventory80,00070,000
Total current assets220,000250,000
Total assets580,000460,000
Current liabilities40,00030,000
Total liabilities150,000207,000
Net credit sales360,000420,000
Cost of goods sold270,000315,000
Net income56,00062,000
Required:

a.What is Phelps' average days to sell inventory for 2021?
b.What is Phelps' debt ratio for 2021?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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lpantslpants
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A month ago
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More solutions for this book are available here
a.$315,000 ÷ [($80,000 + $70,000) ÷ 2] = 4.2 times; 365 ÷ 4.2 = 86.9 days
b.$207,000 ÷ $460,000 = 45%
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ang359 Author
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A month ago
Thank you, thank you, thank you!
jayfo05
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Helped a lot
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This site is awesome
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