Wellman Company has cash of $80,000, net accounts receivable of $180,000, and net sales of $1,440,000. Last year's net accounts receivable were $140,000. Compute the following ratios: a. Receivables turnover. b. Days sales uncollected.

Wellman Company has cash of $80,000, net accounts receivable of $180,000, and net sales of $1,440,000. Last year's net accounts receivable were $140,000. Compute the following ratios: a. Receivables turnover. b. Days sales uncollected.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 44E: Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note:...

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Question

Compute the following ratios on these accounting question

Wellman Company has cash of $80,000, net accounts receivable
of $180,000, and net sales of $1,440,000. Last year's net accounts
receivable were $140,000.
Compute the following ratios:
a. Receivables turnover.
b. Days sales uncollected.

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