Corona Company\'s balance sheet accounts follow: $596,276 $532,820 $468,610 $596
ID: 2465057 • Letter: C
Question
Corona Company's balance sheet accounts follow:
$596,276
$532,820
$468,610
$596,276
$532,820
$468,610
16.59
19.23
18.98
16.28
24.77
At December 31 2014 2013 2012 Assets Cash $55,282 $60,591 $60,624 Accounts receivable, net 107,448 83,423 70,594 Merchandise inventory 124,534 102,919 75,537 Prepaid expenses 37,744 37,527 32,871 Plant assets, net 271,268 248,360 228,984 Total assets$596,276
$532,820
$468,610
Liabilities and Equity Accounts payable $152,886 $111,963 $86,305 Long-term notes payable secured by mortgages on plant assets 130,619 132,647 114,485 Common stock, $10 par value 176,500 176,500 176,500 Retained earnings 136,271 111,710 91,320 Total liabilities and equity$596,276
$532,820
$468,610
Explanation / Answer
Solution-
Day's sales uncollected=Account Receivable/Net Sales*365
=107,448/1,583,101*365
=24.77
Answer is (D).