You have been assigned the task of evaluating Mariano, ’s management of merchandise inventory and receivables. You decided that inventory turn-over, accounts receivable turnover, and average age of...

You

have

been assigned the task of evaluating Mariano, ’s management of merchandise inventory and receivables. You decided that inventory turn-over, accounts receivable turnover, and average age of receivables statistics will prove valuable in your analysis. The following data are available from Mariano’s annual report:

Merchandise Inventory                             Cost of Goods Sold 2 480 000

                                                                  Cash Sales                               1 000 000

Jan. 1                         P 245 000               Total Sales                               5 100 000

Dec. 31                         375 000                Mariano’s Credit terms     Net 30 days

REQUIRED:

1. 
    Inventory turnover


2. 
   Accounts receivable turnover job in managing inventory
   


3. 
   Average
   
   age of receivables and receivable?
   


4. 
   Is Mariano doing a good
   job in managing inventory and receivable?