Selected information taken from the accounting records of Vigor Company follows: Net accounts receivable at December 31, 20X0$900,000 Net accounts receivable at December 31, 20X1$1,000,000 Accounts receivable turnover 5 to 1 Inventories at December 31, 20X0$1,100,000 Inventories at December 31, 20X1$1,200,000 Inventory turnover 4 to 1 Required:What was Vigor’s gross profit for 20X1?Suppose that there are 360 business days in the year. What were the number of days sales outstanding in average receivables and the number of days sales outstanding in average inventories, respectively, for 20X1?

Name: Selected information taken from the accounting records of Vigor Compan
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Description: Selected information taken from the accounting records of Vigor Company follows: Net accounts receivable at December 31, 20X0$900,000 Net accounts receivable at December 31, 20X1$1,000,000 Accounts receivable turnover 5 to 1 Inventories at Decemb

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Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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Selected information taken from the accounting records of Vigor Company follows:


Net accounts receivable at December 31, 20X0	$	900,000
Net accounts receivable at December 31, 20X1	$	1,000,000
Accounts receivable turnover		5 to 1
Inventories at December 31, 20X0	$	1,100,000
Inventories at December 31, 20X1	$	1,200,000
Inventory turnover		4 to 1

Required:

What was Vigor’s gross profit for 20X1?
Suppose that there are 360 business days in the year. What were the number of days sales outstanding in average receivables and the number of days sales outstanding in average inventories, respectively, for 20X1?

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