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Question - The following information is taken from Reagan Company's December 31 balance sheet:
Cash and cash equivalents $8,419
Accounts receivable 70,422
Merchandise inventories 60,362
Prepaid expenses 4,100
Accounts payable $14,950
Notes payable 86,638
Other current liabilities 9,500
If net sales for the current year were $612,000, determine the firm's days' sales uncollected for the year? (Use 365 days a year.)
a. 60 days
b. 85 days
c. 42 days
d. 154 days
e. 70 days
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