Based on the following data for the current year, what is the number of days' sales in accounts receivable? Sales on account during the year $584,000 Cost of merchandise sold during the $300,000 year Account receivable, the beginning $45,000 of year Account receivable, end of year $35,000 Inventory, the beginning of year $90,000 Inventory, end of year $110,000 a. 7.3 b. 2.5 c. 14.6 d. 25

Based on the following data for the current year, what is the number of days' sales in accounts receivable? Sales on account during the year $584,000 Cost of merchandise sold during the $300,000 year Account receivable, the beginning $45,000 of year Account receivable, end of year $35,000 Inventory, the beginning of year $90,000 Inventory, end of year $110,000 a. 7.3 b. 2.5 c. 14.6 d. 25

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Fitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
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Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May, and June if 60% of sales are collected in the month of sale, 30% are collected the month after the sale, and 10% are collected the second month after the sale?
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Berry Farms has an accounts receivable balance at the end of 2018 of $425,650. The net credit sales for the year are $924,123. The balance at the end of 2017 was $378,550. What is the number of days sales in receivables ratio for 2018 (round all answers to two decimal places)?
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