Markus Company's common stock sold for $5.25 per share at the end of this year. The company paid a common stockdividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements:CashAccounts receivableInventoryCurrent assetsTotal assetsCurrent liabilitiesTotal liabilitiesCommon stock, $1 par valueTotal stockholders' equityTotal liabilities and stockholders' equitySales (all on account)Cost of goods soldGross marginNet operating incomeInterest expenseNet incomeThis Year$ 1,095,000$ 635,100$ 459,900$ 313,875$ 15,500$ 208,862Accounts receivable turnoverAverage collection periodAnswer is complete but not entirely correct.13.6226.76 daysEnding Balance$ 49,000$ 92,000$ 76,300$ 217,300$ 801,000$ 85,500$ 206,000$ 165,000$ 595,000$ 801,000Beginning Balance$ 44,200$ 68,700$ 92,000$ 204,900$ 875,400Foundational 14-9 (Algo)9. What is the accounts receivable turnover and the average collection period? (Use 365 days in a year. Round your intermediateand final answers to 2 decimal places.)$ 90,000$ 185,400$ 165,000$ 690,000$ 875,400

Accounts receivable turnover ratio shows how many times the accounts receivables have been collected…

Answered: 9. What is the accounts receivable…

9. What is the accounts receivable turnover and the average collection period? (Use and final answers to 2 decimal places.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Markus Company's common stock sold for $5.25 per share at the end of this year. The company paid a common stock
dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements:
Cash
Accounts receivable
Inventory
Current assets
Total assets
Current liabilities
Total liabilities
Common stock, $1 par value
Total stockholders' equity
Total liabilities and stockholders' equity
Sales (all on account)
Cost of goods sold
Gross margin
Net operating income
Interest expense
Net income
This Year
$ 1,095,000
$ 635,100
$ 459,900
$ 313,875
$ 15,500
$ 208,862
Accounts receivable turnover
Average collection period
Answer is complete but not entirely correct.
13.62
26.76 days
Ending Balance
$ 49,000
$ 92,000
$ 76,300
$ 217,300
$ 801,000
$ 85,500
$ 206,000
$ 165,000
$ 595,000
$ 801,000
Beginning Balance
$ 44,200
$ 68,700
$ 92,000
$ 204,900
$ 875,400
Foundational 14-9 (Algo)
9. What is the accounts receivable turnover and the average collection period? (Use 365 days in a year. Round your intermediate
and final answers to 2 decimal places.)
$ 90,000
$ 185,400
$ 165,000
$ 690,000
$ 875,400

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