Use the below information to answer the following question. Income Statement For
ID: 2808854 • Letter: U
Question
Use the below information to answer the following question.
Income Statement
For the Year
Net sales
$827,500
COGS
611,800
Depreciation
23,100
EBIT
$192,600
Interest
9,700
Taxable income
$182,900
Taxes
6,200
Net income
176,700
Balance Sheet
Beginning of Year
End of Year
Cash
$ 38,200
$43,700
Accounts receivable
91,400
86,150
Inventory
203,900
214,600
Net fixed assets
516,100
537,950
Total assets
849,600
$882,400
Accounts payable
$136,100
104,300
Long-term debt
329,500
298,200
Common stock ($1 par value)
75,000
82,000
Retained earnings
309,000
397,900
Total Liab. & Equity
$849,600
882,400
How many days of sales are in receivables at year-end?
Use the below information to answer the following question.
Income Statement
For the Year
Net sales
$827,500
COGS
611,800
Depreciation
23,100
EBIT
$192,600
Interest
9,700
Taxable income
$182,900
Taxes
6,200
Net income
176,700
Balance Sheet
Beginning of Year
End of Year
Cash
$ 38,200
$43,700
Accounts receivable
91,400
86,150
Inventory
203,900
214,600
Net fixed assets
516,100
537,950
Total assets
849,600
$882,400
Accounts payable
$136,100
104,300
Long-term debt
329,500
298,200
Common stock ($1 par value)
75,000
82,000
Retained earnings
309,000
397,900
Total Liab. & Equity
$849,600
882,400
How many days of sales are in receivables at year-end?
Explanation / Answer
Net Sales = 827,500
Average Receivables = ( Receivables beginning + Receivables ending ) / 2
= ( 91400 + 86150 ) / 2
= 88775
Days of sales in receivables = Average Receivables / Net sales * 365 days
= 88775 / 827,500 * 365
= 39.16 days
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.