Corona Company\'s balance sheet accounts follow: $596,276 $532,820 $468,610 $596

Question

Corona Company's balance sheet accounts follow:

$596,276

$532,820

$468,610

$596,276

$532,820

$468,610

  

16.59

19.23

18.98

16.28

24.77   

  At December 31 2014 2013 2012   Assets   Cash $55,282 $60,591 $60,624   Accounts receivable, net 107,448 83,423 70,594   Merchandise inventory 124,534 102,919 75,537   Prepaid expenses 37,744 37,527 32,871   Plant assets, net 271,268 248,360 228,984   Total assets

$596,276

$532,820

$468,610

  Liabilities and Equity   Accounts payable $152,886 $111,963 $86,305   Long-term notes payable secured by mortgages on plant assets 130,619 132,647 114,485   Common stock, $10 par value 176,500 176,500 176,500   Retained earnings 136,271 111,710 91,320   Total liabilities and equity

$596,276

$532,820

$468,610

Explanation / Answer

Solution-

Day's sales uncollected=Account Receivable/Net Sales*365

=107,448/1,583,101*365

=24.77

Answer is (D).

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