Question

The following data are from Gwelph Corporation’s financial statements for the current year:
Current assets
Cash ............... $ 70,000
Short-term investments ......... 170,000
Notes receivable ........... 240,000
Accounts receivable, net ....... 400,000
Inventory ............... 500,000
Prepaid assets ............. 50,000
Total current assets .......... $1,430,000
Current liabilities
Notes payable ............ $ 600,000
Accounts payable ......... 150,000
Accrued liabilities ......... 20,000
Total current liabilities ....... $ 770,000
Net sales ................... $3,200,000
Last year’s accounts receivable, net ... $ 360,000
a. Compute the receivable turnover.
b. Compute the days’ sales uncollected.



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  • CreatedSeptember 10, 2014
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