**Vortex Computing: Financial Analysis****Table: Financial Information (2017-2019)**| Year | Net Credit Sales | Ending Accounts Receivable ||-------|------------------|----------------------------|| 2017 | $1,557,200 | $398,000 || 2018 | 1,755,310 | 444,400 || 2019 | 1,965,170 | 500,780 |**Instructions:**1. **Compute the Accounts Receivable Turnover Ratios and Days' Sales in Receivables for 2018 and 2019.** - Round answers to two decimal places. - Consider the industry average turnover ratio is 4 times, and the average days' sales in receivables is 85 days. Discuss potential investor insights for Vortex Computing.2. **SNK Corp. Advertising Videos: Note Information** - SNK Corp. records the following notes for the year ending December 31: 1. Jan. 14, $33,000, 30 days, 4% interest 2. Mar. 9, 60,000, 45 days, 5% interest 3. July 12, 48,000, 90 days, 6% interest 4. Oct. 15, 72,000, 60 days, 5% interest 5. Nov. 15, 36,000, 60 days, 6% interest 6. Dec. 10, 24,000, 60 days, 6% interest a. **Determine for Each Note:** - (A) Due date. - (B) Interest amount at maturity. b. **Journalize Note Dishonor:** - Record the entry for the dishonor of Note (3) on its due date. This financial information and activity can be useful for understanding Vortex Computing's performance and evaluating potential investment decisions.

Ratio analysis is done to assess the financial data and the performance of the firm. The ratios can…

1. Compute the accounts receivable turnover ratios and the number of days' sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Vortex Computing if industry average for accounts receivable turnover ratio is 4 times and days' sales in receivables ratio is 85 days?

1. Compute the accounts receivable turnover ratios and the number of days' sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Vortex Computing if industry average for accounts receivable turnover ratio is 4 times and days' sales in receivables ratio is 85 days?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

You are a credit analyst of a growing commercial bank and have recently received loan applications from two companies of relatively similar size. Show below are selected financial data for these two applicants at the end of the current year: RED CO BLUE CO. Net credit sales P700.000.00 P650,000.00 Cost of goods sold P500,000.00 P490,000.00 Cash P60,000.00 P20,000.00 Accounts receivable (net) P77,000.00 P60,000.00 Inventory P94,000.00 P180,000.00 Current liabilities P11000.00 P105,000.00 Assume that the year-end balances for accounts receivable and for inventory approximate the average balances of these items throughout the year. A. Compute the following on BLUE 1. Working capital 2. Current ratio 3. Acid test ratio
pm.6
Please answers parts 4,5, and 6. I have the first three already
Use the information provided below to prepare the following for January and February 2023 as per guide lines on theouc4.1 Debtors Collection Schedule INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 000 6. Fifty percent…
Urgent, please answer the question below.This is how you answer the problem,(a) Identify the given (b)Identify the unknown or what is being asked in the problem(c)Solution, include the formula used to solve the problem(d)box the final answer
The following select financial statement information from Candid Photography. CANDID PHOTOGRAPHY Year Net Credit Sales Ending Accounts Receivable 2017 $2,988,000 $1,290,450 2018 2019 3,750,860 4,000,350 1,345,600 1,546,550 Compute the accounts receivable turnover ratios and the number of days' sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What is the Average Accounts Receivable? What is the Net Credit Sales that would be used? What is the Accounts Relievable Turnover? what is the Days in Receivable Ratio?
Assume you buy a washing machine for $849. You put is on your credit card that charges 23.75% APR, compounded daily. a) What is the APY? (ia)?
MN.3.
hi there tutors! im here to cure my doubts. i hv ques to ask. please help solve. important. fundamentals of finance (state formula needed for each then calculate) Required: Based on the information below, calculate the following ratios for both year 2019 & year 2020: Quick ratio Total debt ratio Time interest earned Day’s sales in receivables Net profit margin Define efficiency ratios dats all tutor. thank you so much!
Use the information provided below to prepare the following for January and February 2023:4.1 Debtors Collection Schedule INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 000 6. Fifty percent (50%) of the purchases are…
Suppose your credit card issuer states that it charges a 19.25% nominal annual rate, but you must make monthly payments, which amounts to monthly compounding. What is the effective annual rate? a. 21.04% b. 19.25% c. 20.18% d. 20.68% e. 20.51%
Directions: Read each senterce carefully and determine whether the statement is TRUE or FALS E. Write your answers on the space provided before each number. 1. At the beginning of the day, you have P200 cash in your pocket. At the end of the day, you have P50 left. If you make a horizontal analysis of your cash, you would conclude that your cash has decreased by 80% during the day. 2. In 2019, Entity A reported sales of P100 and profit of P20. In a vertical analysis, a financial statement user would conclude that Entity A was able to generate 20% profit from every peso of its sales during the period. 3. Entity A reported irventory balances of P100 and P50 in 2019 and 2018, respectively. In a horizontal analysis, a financial statement user would conclude that Entity A's inventory has increased by 50% from2018 to 2019. 4. An analysis of the intenelationships of infomation in a single period, expressed as parcentages of a common denomirator, is called horizortal analysis. 5. A comparison…