Corona Company's balance sheet accounts follow:
-What is Corona Company's days' sales uncollected ratio for 2014 assuming net sales and gross profit for the period were $1,236,783,and $927,587 respectively?
A)25.20
B)23.03
C)20.99
D)24.58
E)22.17

Question

Corona Company's balance sheet accounts follow: 
-What is Corona Company's days' sales uncollected ratio for 2014 assuming net sales and gross profit for the period were $1,236,783,and $927,587 respectively?
A)25.20 
B)23.03 
C)20.99 
D)24.58 
E)22.17

Quizplus · Accepted Answer

Days' Sales Uncollected Ratio = (Accounts Receivable / Net Sales) x 365
Accounts Receivable = $292,196
Days' Sales Uncollected Ratio = (292,196 / 1,236,783) x 365 = 23.03 days (rounded to two decimal places) 
Therefore, the correct answer is B.

Corona Company's Balance Sheet Accounts Follow