Question

Monipunny wycurer WIGILE JUICCI TUHUVY. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 34,119 89,500 113,000 10,987 319,336 $566,942 $ 39,881 $ 40,321 62,800 50, 100 82,000 51,000 10,469 4,480 293,593 253,399 $ 488,743 $ 399, 300 $143,992 $ 84,250 $ 53,762 108,717 162,500 151,733 $566,942 114,659 90,010 162,500 162,500 127,334 93,028 $ 488,743 $ 399, 300 The company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sales are on credit: 1 Yr Ago $ 581,604 For Year Ended December 31 Sales Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income Earnings per share Current Yr $ 737,025 $ 449,585 228, 478 12,529 9,581 700,173 $ 36,852 $ 2.27 $ 378,043 147, 146 13,377 8,724 547,290 $ 34,314 $ 2.11

Answer 1

Answer :- Computation of days' sales uncollected :-

Days' sales uncollected = Accounts Receivable/net sales *365

Current year = $89,500 / $737,025 *365 = 44.32 days

1 Yr Ago = $62,800 / $581,604 * 365 = 39.41 days

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