The following data are from Gwelph Corporations financial statements for the current year: Current assets Cash
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.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
a Receivable Turnover Days Sales Uncoll...View the full answer
