C What is the days' sale in receivables for the current year (show ALL work and equations) What does the days' in receivable tell you about a business Account Current Year Prior Year Net sales (all credit) $445,400 $362,000 Costs of goods sold $220,000 $185,000 Gross profit $225,400 $177,000 Income from operations $72,000 $80,000 Interest expense $8,000 $14,000 Net income $40,000 $35,000 Cash $34,000 $28,000 Accounts receivable, net $42,000 $62,000 Inventory $120,000 $100,000 Prepaid expenses $4,000 $2,000 Total current assets $200,000 $192,000 Total long term assets $200,000 $230,000 Total current liabilities $100,000 $165,000 Total long term liabilities $44,000 $95,000 Common stock, no par, $8,000 shares, value $120 share $80,000 $80,000

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C  What is the days' sale in receivables for the current year  (show ALL work and equations) What does the days' in receivable tell you about a business  Account Current Year Prior Year Net sales (all credit) $445,400 $362,000 Costs of goods sold $220,000 $185,000 Gross profit $225,400 $177,000 Income from operations $72,000 $80,000 Interest expense $8,000 $14,000 Net income $40,000 $35,000 Cash $34,000 $28,000 Accounts receivable, net $42,000 $62,000 Inventory $120,000 $100,000 Prepaid expenses $4,000 $2,000 Total current assets $200,000 $192,000 Total long term assets $200,000 $230,000 Total current liabilities $100,000 $165,000 Total long term liabilities $44,000 $95,000 Common stock, no par, $8,000 shares, value $120 share $80,000 $80,000

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C. What is the days' sale in receivables for the current year? (show ALL work and equations) What does the days' in receivable tell you

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Account	Current Year	Prior Year
Net sales (all credit)	$445,400	$362,000
Costs of goods sold	$220,000	$185,000
Gross profit	$225,400	$177,000
Income from operations	$72,000	$80,000
Interest expense	$8,000	$14,000
Net income	$40,000	$35,000
Cash	$34,000	$28,000
Accounts receivable, net	$42,000	$62,000
Inventory	$120,000	$100,000
Prepaid expenses	$4,000	$2,000
Total current assets	$200,000	$192,000
Total long-term assets	$200,000	$230,000
Total current liabilities	$100,000	$165,000
Total long-term liabilities	$44,000	$95,000
Common stock, no par, $8,000 shares, value $120/share	$80,000	$80,000