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Gerrard Construction Co. is an excavation contractor. The following summarized data (in thousands) a

Gerrard Construction Co. is an excavation contractor. The following summarized data (in thousands) are taken from the December 31, 2016, financial statements:

 
For the Year Ended December 31, 2016:      
Net revenues $ 30,200  
Cost of services provided   12,000  
Depreciation expense   6,000  
Operating income $ 12,200  
Interest expense   3,100  
Income tax expense   3,600  
Net income $ 5,500  
At December 31, 2016:      
Assets      
Cash and short-term investments $ 3,200  
Accounts receivable, net   9,600  
Property, plant, and equipment, net   78,400  
Total assets $ 91,200  
Liabilities and Stockholders' Equity      
Accounts payable $ 1,300  
Income taxes payable   1,900  
Notes payable (long term)   46,300  
Paid-in capital   12,000  
Retained earnings   29,700  
Total liabilities and stockholders' equity $ 91,200  
 

At December 31, 2015, total assets were $81,000 and total stockholders' equity was $37,000. There were no changes in notes payable or paid-in capital during 2016.

1. Assume that the balance of "Accounts Receivable, net" at December 31, 2015, was $8,900. Calculate the following activity measures for Gerrard Construction Co. for the year ended December 31, 2016:

a. Calculate the Accounts receivable turnover. (Round your answer to 1 decimal place.)

b. Calculate the number of days' sales in accounts receivable. (Use 365 days of the year. Do not round intermediate calculations. Round your answer to 1 decimal place.)

 

Apr 04 2020 View more View Less

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