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 accounts receivable at December 31, 2016..................$ 900,000
Net accounts receivable at December 31, 2017.................$1,000,000
Accounts receivable turnover............................................5 to 1
Inventories at December 31, 2016................................$1,100,000
Inventories at December 31, 2017................................$1,200,000
Inventory turnover.........................................................4 to 1
Required:
1. What was Vigor's gross profit for 2017?
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 2017?
Accounts ReceivableAccounts 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...
Step by Step Answer:
Requirement 1 Gross profit equals net sales minus cost o...View the full answer
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
