baby Co has these selected data: Net accounts receivable December 31, 2007 P900,000 Net accounts receivable December 31, 2008 P1,000,000 Accounts receivable turnover 5 times Inventories December 31, 2007 P1,100,000 Inventories December 31, 2008 P1,200,000 Inventory turnover 4 times Number of days in a year 300 days Company gross margin for 2008 was a. P150,000 b. P200,000 c. P250,000 d. P400,000 What was the number of days in receivables and the number of days in inventories for 2008, respectively? a. 30 and 30 b. 60 and 60 c. 60 and 75 d. 63 and 77

baby Co has these selected data: Net accounts receivable December 31, 2007 P900,000 Net accounts receivable December 31, 2008 P1,000,000 Accounts receivable turnover 5 times Inventories December 31, 2007 P1,100,000 Inventories December 31, 2008 P1,200,000 Inventory turnover 4 times Number of days in a year 300 days Company gross margin for 2008 was a. P150,000 b. P200,000 c. P250,000 d. P400,000 What was the number of days in receivables and the number of days in inventories for 2008, respectively? a. 30 and 30 b. 60 and 60 c. 60 and 75 d. 63 and 77

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.5E

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Question

baby Co has these selected data:

Net accounts receivable December 31, 2007 P900,000

Net accounts receivable December 31, 2008 P1,000,000

Accounts receivable turnover 5 times

Inventories December 31, 2007 P1,100,000

Inventories December 31, 2008 P1,200,000

Inventory turnover 4 times

Number of days in a year 300 days

Company gross margin for 2008 was

a. P150,000 b. P200,000 c. P250,000 d. P400,000

What was the number of days in receivables and the number of days in inventories for 2008, respectively?

a. 30 and 30 b. 60 and 60 c. 60 and 75 d. 63 and 77

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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