The following current year information is available from a manufacturing company:
$\begin{array}{lr}
\text { Sales } & \$ 740,000 \
\text { Gross profit on sales } & 276,000 \
\text { Operating income } & 64,000 \
\text { Income before taxes } & 44,000 \
\text { Net income } & 33,600 \
\text { Accounts Receivable, beginning-year } & 58,000 \
\text { Accounts Receivable, end-of-year } & 72,000
\end{array}$ Calculate the company's accounts receivable turnover and its days' sales uncollected.

Question

The following current year information is available from a manufacturing company:
 $\begin{array}{lr}
\text { Sales } & \$ 740,000 \
\text { Gross profit on sales } & 276,000 \
\text { Operating income } & 64,000 \
\text { Income before taxes } & 44,000 \
\text { Net income } & 33,600 \
\text { Accounts Receivable, beginning-year } & 58,000 \
\text { Accounts Receivable, end-of-year } & 72,000
\end{array}$ Calculate the company's accounts receivable turnover and its days' sales uncollected.

Quizplus · Accepted Answer

The Answer of The following current year information is available from a manufacturing company:
 $\begin{array}{lr}
\text { Sales } & \$ 740,000 \
\text { Gross profit on sales } & 276,000 \
\text { Operating income } & 64,000 \
\text { Income before taxes } & 44,000 \
\text { Net income } & 33,600 \
\text { Accounts Receivable, beginning-year } & 58,000 \
\text { Accounts Receivable, end-of-year } & 72,000
\end{array}$ Calculate the company's accounts receivable turnover and its days' sales uncollected.

The Following Current Year Information Is Available from a Manufacturing