Question

View History Bookmarks Window Help 슬 newconnectrteducation.com Exam 1 6 Help Save &Exit Submi MC Qu. 162 Refer to the following selected financial. Refer to the following selected financial information from McCormik, LLC. Compute the company's days sales uncollected for Year 2. (Use 365 days a year.) Year 2 Year 1 37,700 32,450 Short-term investments 92,000 61,000 Accounts receivable, net 86,500 80,500 122,000 126,000 12,300 9,900 389,000 339,000 112,400 108,800 712,000 677,000 391,000 376,000 Cash Merchandise inventory Prepaid expenses Plant assets Accounts payable Net sales Cost of goods sold Multiple Choice O 443 Next> < Prev20 of 40 20 8 4

Answer 1

Days' sales uncollected ratio indicates no.of days taken by the company to collect their accounts receivable.

This ratio can be calculated by dividing accounts receivable by net sales and multiplying the result with 365.

Days' sales uncollected ratio = Accounts receivable / Net sales x 365

= 86,500 / 712,000 x 365

= 44.3

Hence correct option is 44.3