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Mamont248 [21]
3 years ago
12

The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 10,319 Accounts

receivable 79,922 Merchandise inventories 69,862 Prepaid expenses 6,000 Accounts payable $ 16,850 Notes payable 96,138 Other current liabilities 11,400 If net credit sales for the current year were $602,000, the firm's days' sales uncollected for the year is: (Use 365 days a year.)
Business
1 answer:
garri49 [273]3 years ago
8 0

Answer:

49 days

Explanation:

Account receivable turnover ratio = Net credit sales / Accounts receivable

Account receivable turnover ratio = $602,000 / $79,922

Account receivable turnover ratio = 7.53

Average collection period = 365/7.53

Average collection period = 48.47277556440903

Average collection period = 49

Thus, firm’s sales uncollected for year is 49 days.

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In 2015, the city of Berkeley instituted a tax on sugar-sweetened sodas. Suppose that the tax increased the price of a typical s
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