Answered

Discover the best answers at Westonci.ca, where experts share their insights and knowledge with you. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Item1 1 points eBookAskReferencesItem 1 TB MC Qu. 06-91 The following information... The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 8,419 Accounts receivable 70,422 Merchandise inventories 60,362 Prepaid expenses 4,100 Accounts payable $ 14,950 Notes payable 86,638 Other current liabilities 9,500 If net sales for the current year were $612,000, the firm's days' sales uncollected for the year is: (Use 365 days a year.)

Sagot :

Answer: 42 days

Explanation:

To solve the above question, first, we will have to calculate the debtors turnover ratio which is the date sales uncollected for the year. This will be:

= Sales/Average Accounts Receivables

= $612,000 / $70,422

= 8.69 times

Since we are using 365 days for a year, then the firm's days sales uncollected for the year will be calculated as:

= 365 / 8.69

= 42 days

We appreciate your time. Please come back anytime for the latest information and answers to your questions. We hope this was helpful. Please come back whenever you need more information or answers to your queries. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.