Selected information taken from the accounting records of Vigor Company follows Net accounts receivable at December 31, 2013 $ 900,000 Net accounts receivable at December 31, 2014 $1,000,000 Accounts receivable turnover 5 to 1 Inventories at December 31, 2013 $1,100,000 Inventories at December 31, ...

Requirement 1 Gross margin equals net sales minus cost ...

Selected information taken from the accounting records of Vigor Company follows: Net accounts receivable at December 31,

Question:

Selected information taken from the accounting records of Vigor Company follows:
Net at December 31, 2013 .... $ 900,000
Net at December 31, 2014 .... $1,000,000
Accounts receivable turnover ............. 5 to 1
Inventories at December 31, 2013 ......... $1,100,000
Inventories at December 31, 2014 ......... $1,200,000
Inventory turnover .................. 4 to 1

Required:
1. What was Vigor’s gross profit for 2014?
2. Suppose that there are 360 business days in the year. What were the number of days sales outstanding in average receivables and the number of days sales outstanding in average inventories, respectively, for 2014?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...