Using the following data from Lopez Corporations financial statements, compute the receivable turnover and the days sales

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Using the following data from Lopez Corporation’s financial statements, compute the receivable turnover and the days sales uncollected:

Current assets

Cash ............................................................$ 35,000

Short-term investments ............................. 85,000

Notes receivable ....................................... 120,000

Accounts receivable, net ..........................200,000

Inventory ....................................................250,000

Prepaid assets ............................................ 25,000

Total current assets .............................. $715,000

Current liabilities

Notes payable ........................................$ 300,000

Accounts payable ...................................... 75,000

Accrued liabilities ...................................... 10,000

Total current liabilities ......................... $385,000

Net sales ..............................................$1,600,000

Last year’s accounts receivable, net ... $180,000

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Principles of Accounting

ISBN: 978-1439037744

11th Edition

Authors: Needles, Powers, crosson

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