Rosco Co. manufactures and markets food products throughout the world. The following sales and receivable data were reported by Rosco for two recent years: Year 2 Year 1 Sales $4,126,325 $3,918,640 Accounts receivable 489,100 481,800 Assume that the accounts receivable were $408,800 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place. Year 2: fill in the blank 1 Year 1: fill in the blank 2 b. Compute the days' sales in receivables at the end of Year 2 and Year 1. Use 365 days per year in your calculations. Round to one decimal place. Year 2: fill in the blank 3 days Year 1: fill in the blank 4 days
Rosco Co. manufactures and markets food products throughout the world. The following sales and receivable data were reported by Rosco for two recent years: Year 2 Year 1 Sales $4,126,325 $3,918,640 Accounts receivable 489,100 481,800 Assume that the accounts receivable were $408,800 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place. Year 2: fill in the blank 1 Year 1: fill in the blank 2 b. Compute the days' sales in receivables at the end of Year 2 and Year 1. Use 365 days per year in your calculations. Round to one decimal place. Year 2: fill in the blank 3 days Year 1: fill in the blank 4 days
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter9: Receivables
Section: Chapter Questions
Problem 27E
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Rosco Co. manufactures and markets food products throughout the world. The following sales and receivable data were reported by Rosco for two recent years:
| Year 2 | Year 1 | |||
| Sales | $4,126,325 | $3,918,640 | ||
| Accounts receivable | 489,100 | 481,800 |
Assume that the accounts receivable were $408,800 at the beginning of Year 1.
a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place.
| Year 2: | fill in the blank 1 |
| Year 1: | fill in the blank 2 |
b. Compute the days' sales in receivables at the end of Year 2 and Year 1. Use 365 days per year in your calculations. Round to one decimal place.
| Year 2: | fill in the blank 3 days |
| Year 1: | fill in the blank 4 days |
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