Based on the financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) shown below, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20–, was $21,600. Assume 365 days per year.
Return on owner’s equity
Accounts receivable turnover and average number of days required to collect receivables
Inventory turnover and average number of days required to sell inventory