Refer to the Sanderson Company information in Exercise 17-7. The companys income statements for the years ended

Refer to the Sanderson Company information in Exercise 17-7. The company’s income statements for the years ended December 31, 2012 and 2011, follow. Assume that all sales are on credit and then compute:

(1) Days’ sales uncollected,

(2) Accounts receivable turnover,

(3) Inventory turnover, and

(4) Days’ sales in inventory.

Comment on the changes in the ratios from 2011 to 2012.

Transcribed Image Text:

For Year Ended December 31 2012 2011 Sales.... Cost of goods sold. Other operating expenses Interest expense Income taxes Total costs and expenses Net income.. Earnings per share.... $672,500 $530,000 $410 225 208.550 11,100 8,525 $344,500 133,980 2,300 7,845 638,400 34,100 S 2.10 498,625 $ 31.375 5 1.93