Question: 1. What is the difference between the percents shown on a comparative income statement and those shown on a common-size comparative income statement?
2. On Dec. 31, 2011, Paff Company had accounts receivable of $290,000 and inventories of $530,000. During 2011, net sales amounted to $2,500,000 and cost of goods sold was $750,000. Compute
(a) accounts receivable turnover,
(b) days' sales uncollected,
(c) inventory turnover, and
(d ) days' sales in inventory