Comparative Calendar-Year Financial Data for a Company Are Shown Below

question 48

Essay

Comparative calendar-year financial data for a company are shown below:
$\begin{array}{|l|r|r|} \hline&{2014} &{2013} \\\hline \text { Sales } & \$ 720,000 & \$ 607,500 \\\hline \text { Cost of goods sold } & 450,000 & 382,700 \\\hline \text { Operating expenses } & 168,500 & 134,900 \\\hline \text { Net income } & 51,200 & 51,700 \\\hline\\\hline & \text { December 31, } & {\text { December 31, }} \\\hline & 2014 & {2013} \\\hline \text { Accounts receivable (net } & \$ 157,500 & \$ 162,500 \\\hline \text { Inventory } & 139,500 & 110,500 \\\hline \text { Total assets } & 1,012,500 & 944,800\\\hline\end{array}$ Calculate:
(1) Accounts receivable turnover for 2014.
(2) Days' sales uncollected for 2014.
(3) Inventory turnover for 2014.
(4) Days' sales in inventory for 2014.

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Definitions:

Start-Up Process

The sequence of steps that an entrepreneur takes to establish a new business, including idea generation, market research, business model development, and securing funding.

Entrepreneurship

The process of identifying opportunities for which marketable needs exist and assuming the risk of creating an organization to satisfy them.

Customer Base

Refers to the group of customers who repeatedly purchase the goods or services of a business.

Environmental Forces

External factors that influence a business's operations and decision-making, including economic, political, regulatory, technological, and social factors.