Required
L. Konreth Company
Net sales
Receivables, less allowance for doubtful accounts of $4,000
$1,850,000
60,000
a. Compute the days' sales in receivables for both companies. (Use year-end gross
receivables.)
b. Comment on the results.
Re4-53 P. Gibson Company has computed its accounts receivable turnover in days to be 36.
Required Compute the accounts receivable turnover per year.
Re6-5b P. Gibson Company has computed its accounts receivable turnover per year to be 12.
Required Compute the accounts receivable turnover in days.
P 6-5c P. Gibson Company has gross receivables at the end of the year of $280,000 and
net sales for the year of $2,158,000.
Required Compute the days' sales in receivables at the end of the year.
P6-5d P. Gibson Company has net sales of $3,500,000 and average gross receivables of
$324,000.
Required Compute the accounts receivable turnover.
P 6-6 J. Shaffer Company has an ending inventory of $360,500 and a cost of goods sold
for the year of $2,100,000. It has used LIFO inventory for a number of years because of per-
sistent inflation.
Required
a. Compute the days' sales in inventory.
b. Is J. Shaffer Company's days' sales in inventory as computed realistic in comparison
with the actual days' sales in inventory?
c. Would the days' sales in inventory computed for J. Shaffer Company be a helpful guide?
P 6-7 D. Szabo Company had an average inventory of $280,000 and a cost of goods sold
of $1,250,000.
Required Compute the following:
a. The inventory turnover in days
b. The inventory turnover
P 6-8 The inventory and sales data for this year for G. Rabbit Company are as follows:
Net sales
Gross receivables
Inventory
Cost of goods sold
End of Year
$3,150,000
180,000
480,000
2,250,000
Beginning of Year
$160,000
390,000
Required Using the above data from G. Rabbit Company, compute the following:
a. The accounts receivable turnover in days
b. The inventory turnover in days
c. The operating cycle
Company would like to estimate how long it will take to realize can
following data are submitted:
