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Accounts Receivable Turnover and Days' Sales in Receivables Rosco Co. manufactures and markets food products throughout the world. The following sales and receivable data
Accounts Receivable Turnover and Days' Sales in Receivables Rosco Co. manufactures and markets food products throughout the world. The following sales and receivable data were reported by Rosco for two recent years: Sales Accounts receivable Year 2 Year 1 $5,329,730 $5,050,505 547,500 540,200 Assume that the accounts receivable were $459,900 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round your answers to one decimal place. Year 2: Year 1: b. Compute the days' sales in receivables at the end of Year 2 and Year 1. Use 365 days per year in your calculations. Round your answers to one decimal place. Year 2: Year 1: days days c. The change in the accounts receivable turnover from year 1 to year 2 indicates a(n) decrease collecting accounts receivable and is a(n) unfavorable in the efficiency of change. The change in the days' sales in receivables indicates a(n) unfavorable change. Revision of Depreciation Equipment with a cost of $705,600 has an estimated residual value of $75,600, has an estimated useful life of 35 years, and is depreciated by the straight-line method. a. Determine the amount of the annual depreciation. b. Determine the book value at the end of the 20 full years of use. c. Assuming that at the start of the year 21 the remaining life is estimated to be 20 years and the residual value is estimated to be $61,600, determine the depreciation expense for each of the remaining 20 years.
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