The Following Current Year Information Is Available from a Manufacturing

question 172

Essay

The following current year information is available from a manufacturing company:
$$\begin{array} { | l | r |} \hline \text { Sales } & \$ 740,000 \\\hline \text { Gross profit on sales } & 276,000 \\\hline \text { Operating income } & 64,000 \\\hline \text { Income before taxes } & 44,000 \\\hline \text { Net income } & 33,600 \\\hline \text { Accounts Receivable, beginning-year } & 58,000 \\\hline \text { Accounts Receivable, end-of-year } & 72,000 \\\hline\end{array}$$
Calculate the company's accounts receivable turnover and its days' sales uncollected.

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Definitions:

Insurance Contract

A legally binding agreement between an insurer and the insured, where the insurer agrees to compensate the insured for specific losses in exchange for a premium.

Leases

Legal agreements granting use or occupation of property during a specified period in exchange for a specified rent or terms.

Duration

The duration or period that something exists or persists.

Property Owner

An individual or entity that holds legal title and ownership rights over a piece of property.