00:01
Hello students, here is a question.
00:03
Raiboda corporation has provided the following financial data for its balance sheet and income statement.
00:09
Year 2 and year 1.
00:11
The cash is $74 ,000 and $130 ,000.
00:14
Account receivable is net $255 ,000 and $240 ,000.
00:19
Inventory is $173 ,000 and $180 ,000.
00:22
Total current assets are $64 ,000 and $610 ,000.
00:27
Total assets are $1 ,350 ,000 and $1 ,330 ,000.
00:32
Accounts payable is $170 ,000 and $160 ,000.
00:35
Total liabilities are $633 ,000 and $620 ,000.
00:39
Total stockholders of equity is $717 ,000 and $710 ,000 of sales.
00:46
And $1 ,290 ,000 of cost of goods sold of $700 ,000.
00:51
Company's average collection period for year 2 is closest to.
00:54
We have some options given in the question.
00:57
We need to choose the right options from this.
00:59
Let us start calculating this.
01:01
So, we need to calculate the inventory turnover ratio first.
01:06
That is inventory turnover ratio.
01:13
So, the formula is cost of goods sold divided by average inventory...