All accounts have normal balances

The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash …………………………………………………………$ 33,340 Accounts receivable ……………………………………………47,700 Note receivable, due 2020 ………………………………………9,500 Merchandise inventory ………………………………………..35,700 Prepaid insurance ………………………………………………2,350 Supplies …………………………………………………………1,410 Equipment …………………………………………………….43,500 Accumulated depreciation, equipment ……………………….23,500 Note payable to bank, due 2020 ………………………………35,000 Accounts payable …………………………………………….13,050 Interest payable ………………………………………………….350 Sales …………………………………………………………535,000 Sales discounts ………………………………………………..3,200 Cost of goods sold …………………………………………348,540 Accounts Receivable at December 31, 2018, was $52,550. Merchandise inventory at December 31, 2018, was $58,500. Based on the account balances above, calculate the following: a. The gross profit percentage b. Working capital c. The current ratio d. The inventory turnover e. The accounts receivable turnover. All sales were on credit. View Solution:
The following selected accounts were taken from the financial records

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