Corona Company's balance sheet accounts follow:

What is Corona Company's days' sales uncollected ratio for 2011 assuming net sales and gross profit for the period were $1,236,783, $927,587 respectively?

Question

Corona Company's balance sheet accounts follow: 
 
What is Corona Company's days' sales uncollected ratio for 2011 assuming net sales and gross profit for the period were $1,236,783, $927,587 respectively?

Quizplus · Accepted Answer

Days' sales uncollected ratio = (Accounts receivable ÷ Net sales) × 365

Accounts receivable = $128,758 + $95,792 = $224,550

Days' sales uncollected ratio = (224,550 ÷ 1,236,783) × 365 = 66.42

Therefore, Corona Company's days' sales uncollected ratio for 2011 is 23.03 (rounded to two decimal places).

Corona Company's Balance Sheet Accounts Follow