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Excerpts from Hulkster Company's December 31, 2018 and 2017, financial statements are presented below: 2018 2017...

Excerpts from Hulkster Company's December 31, 2018 and 2017, financial statements are presented below:

2018 2017

Accounts receivable $ 40,000 $ 36,000

Merchandise inventory    28,000 35,000

Net sales 190,000 186,000

Cost of goods sold 114,000 108,000

Total assets 425,000 405,000

Total shareholders' equity 240,000 225,000

Net income 32,500 28,000

1. Hulkster's 2018 average collection period is____________________

2. Hulkster's 2018 average days in inventory is (rounded)______________________

3. Hulkster's 2018 return on assets is (rounded):___________________________

4. What does the average collection period tell you?

5. What does the average days in inventory tell you?

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ekkarill92 answered 1 year ago
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