P13-59B (similar to) Comparative inancial statement data of Rourke Optical Mart

Question

P13-59B (similar to) Comparative inancial statement data of Rourke Optical Mart follow (Cick on te kon to view te income statements) (Click on the icon to view the balance sheets) Other information 1. Market price of Rourke common stock $9394 at December 31, 2016, and $112 00 at December 31, 2015 2. Common shares outstanding 14,000 during 2016 and 9,000 during 2015 3. All sales on credit Read the tequirements 2015 c. Receivables turnover and days' sales oustanding (DSO) (round to the nearest whole day) Begin by seleting the fommula and then enter the amounts to calculate recelvables turnover for 20 16 and 2015 (Round the ratios to two decimal places )h 238,000 Accounts receivable turnowe 2016 2015 Choose trom any list or enter any number in the input nekts and then click Check Answer 14 Pning Clear Al Check Answer ere to search 8

Explanation / Answer

Calculate account receivable turnover :

Average receivable 2015 = (159000+139000)/2=149000

2016: (159000+215000/2)=187000

Year Net sales / average receivable = Account receivable turnover 2015 598000 / 149000 = 4.01 2016 675000 / 187000 = 3.61

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