Selected information taken from the accounting records of Vigor Company follows: Net accounts receivable at December 31, 20X0$900,000 Net accounts receivable at December 31, 20X1$1,000,000 Accounts receivable turnover 5 to 1 Inventories at December 31, 20X0$1,100,000 Inventories at December 31, 20X1$1,200,000 Inventory turnover 4 to 1 Required:What was Vigor’s gross profit for 20X1?Suppose that there are 360 business days in the year. What were the number of days sales outstanding in average receivables and the number of days sales outstanding in average inventories, respectively, for 20X1?

Name: Selected information taken from the accounting records of Vigor Compan
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Description: Selected information taken from the accounting records of Vigor Company follows: Net accounts receivable at December 31, 20X0$900,000 Net accounts receivable at December 31, 20X1$1,000,000 Accounts receivable turnover 5 to 1 Inventories at Decemb

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Selected information taken from the accounting records of Vigor Company follows:


Net accounts receivable at December 31, 20X0	$	900,000
Net accounts receivable at December 31, 20X1	$	1,000,000
Accounts receivable turnover		5 to 1
Inventories at December 31, 20X0	$	1,100,000
Inventories at December 31, 20X1	$	1,200,000
Inventory turnover		4 to 1

Required:

What was Vigor’s gross profit for 20X1?
Suppose that there are 360 business days in the year. What were the number of days sales outstanding in average receivables and the number of days sales outstanding in average inventories, respectively, for 20X1?

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