a. Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin of
Question:
a. Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit. Year 1 Year 2 Accounts receivable $ 150,000 $ 170,000 Inventory 900,000 1,000,000 Accounts payable 1,100,000 1,200,000
Accounts receivable days outstanding at the end of Year 2 is closest to:
a. 30.6 days.
b. 26.0 days.
c. 27.0 days.
d. 6.1 days.
b. Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit. Year 1 Year 2 Accounts receivable $ 150,000 $ 170,000 Inventory 900,000 1,000,000 Accounts payable 1,100,000 1,200,000
Days in inventory at the end of Year 2 is closest to:
a. 60.0 days.
b. 69.0 days.
c. 66.0 days.
d. 54.0 days.
Expert Answer:
a The accounts receivable days is computed by using the below formula Accounts rec... View the full answer
