Smith Company gathered the following information for 20X2:

\begin{array}{l}\begin{array} { | l | r | } \hline \text { Total sales revenue } ( 65 \% \text { on credit) } & \$ 432,000 \\\hline \text { Cost of goods sold } & 231,000 \\\hline \text { Sales returns and allowances (on credit) } & 44,000 \\\hline \text { Trade receivables at end of 20X2 (\$30,000 increase during 20X2) } & 100,000 \\\hline \text { Allowance for doubtful accounts: } &\\\hline \text { Beginning of 20X2 } & 5,000 \\\hline \text { End of 20X2 } & 7,000 \\ \hline \text { Merchandise inventory at end of 20X2 (\$10,000 decrease during 20X2) } & 28,000 \\\hline \text { Assume 365 days in the year } & \\\hline\end{array}\\\\\begin{array} { | l | l | } \hline \text { (a) } & \text { Receivable turnover } \\\hline \text { (b) } & \text { Average number of days to collect } \\\hline \text { (c) } & \text { Inventory turnover } \\\hline \text { (d) } & \text { Average number of days' supply of inventory } \\\hline\end{array}\end{array}

Review of the ﬁNancial Statements Revealed the Following for Petrolis

Multiple Choice