The following data were available for Holiday Company:
Sales revenue,$225,000 (including $75,000 cash sales)
Cost of goods sold,$175,000
Average balance in inventory,$20,000
Average balance in accounts receivable,$20,000
Assume 365 days in the year
Calculate each of the following ratios.Round your answers to two decimal places.
A.Inventory turnover ratio
B.Average days to sell inventory
C.Receivable turnover ratio
D.Average days to collect receivables

Inventory Turnover Ratio

A measure of how quickly a company sells its inventory, indicating the efficiency of inventory management.

Receivable Turnover Ratio

A financial metric that measures how efficiently a company collects cash from its credit sales by calculating the number of times average receivables are collected during a period.

Average Days

Average days, often related to accounts receivable and payable, refers to the average number of days it takes a company to collect payments from customers or the time it takes to pay suppliers.