Sanderson Company%u2019s year-end balance sheets follow. At December 31 2012 201

Question

Sanderson Company%u2019s year-end balance sheets follow.
   
     At December 31              2012              2011              2010
     Assets                                           
     Cash         $    31,659         $    37,007         $    39,343
     Accounts receivable, net              91,758              64,762              52,458
     Merchandise inventory              115,369              85,578              56,432
     Prepaid expenses              10,195              9,714              4,371
     Plant assets, net              304,213              279,830              257,096
              
    
    
     Total assets         $    553,194         $    476,891         $    409,700
              
    
    
     Liabilities and Equity                                           
     Accounts payable         $    133,613         $    78,177         $    52,458
     Long-term notes payable secured by
mortgages on plant assets              100,880              106,394              87,827
     Common stock, $10 par value              162,500              162,500              162,500
     Retained earnings              156,201              129,820              106,915
              
    
    
     Total liabilities and equity         $    553,194         $    476,891         $    409,700
              
    
    

The company%u2019s income statements for the years ended December 31, 2012 and 2011, follow. Assume that all sales are on credit:
  
For Year Ended December 31    2012    2011
Sales                   $    719,152                        $    567,500
Cost of goods sold    $    438,683                      $    368,875            
Other operating expenses        222,937                          143,578            
Interest expense         12,226                             13,053             
Income taxes         9,349                             8,513             
    
                   
         
Total costs and expenses                        683,195                             534,019
                   
                   
Net income                   $    35,957                        $    33,481
                   
                   
Earnings per share                   $    2.21                        $    2.06
                   
                   

rev: 02_21_2012


2.value:
10.00 points

(1)   
Compute days' sales uncollected. (Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place.)

    
2012    days
2011    days
check my workeBook LinkView Hint #1references


3.value:
10.00 points

(3)   
Compute inventory turnover. (Do not round intermediate calculations and round your final answers to 1 decimal place.)

    
2012    times
2011    times
check my workeBook LinkView Hint #1references


4.value:
10.00 points

(2)   
Compute accounts receivable turnover. (Do not round intermediate calculations and round your final answers to 1 decimal place.)

    
2012    times
2011    times
check my workeBook LinkView Hint #1references


5.value:
10.00 points

(4)   
Compute days' sales in inventory. (Use 365 days a year. Do not round intermediate calculations and round your final answers to one decimal place.)

    
2012    days
2011    days

Explanation / Answer

days sales uncollected= (accounts receivable/ net sales)*365

2012=91758/719152)*365=46.8 or 47

2011=(64762/567500)*365=41.6 or 42

3. inventory turnover= COGS/avg. inventory

2012= 438683/100473.5=4.366

2011= 368875/71005=5.19

2.accounts receivable turnover= sales/ avg accounts receivable

2012= 719152/78260=9.189

2011= 567500/58610=9.68

4. days sales in inventory=(avg. inventory/COGS)*365

2012=100473.5/438683)*365=83.6 0r 84

2011=(71005/368875)*365=70.2 or 70

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