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:

Microchip(s)

Small semiconductor devices that contain integrated circuits used in electronic devices for processing, memory, or specific control functions.

Comparative Advantage

The capability of a person or group to perform a specific economic task with greater efficiency than another.

Microchips

Small electronic components that contain the computing and logic functions of a device or product.

Tires

Rubber coverings placed around the rims of wheels of vehicles and bicycles to provide traction and absorb shocks, essential for the vehicle's performance and safety.