A company has the following financial information: • Annual Credit Sales: $750,000 • Accounts Receivable Turnover Ratio: 8 Number of Days in a Year: 365 Calculate the Average Collection Period A) 30 days B) 45.625 days C) 40 days D) 55 days

A company has the following financial information: • Annual Credit Sales: $750,000 • Accounts Receivable Turnover Ratio: 8 Number of Days in a Year: 365 Calculate the Average Collection Period A) 30 days B) 45.625 days C) 40 days D) 55 days

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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Question

General Accounting

A company has the following financial information:
•
Annual Credit Sales: $750,000
•
Accounts Receivable Turnover Ratio: 8
Number of Days in a Year: 365
Calculate the Average Collection Period
A) 30 days
B) 45.625 days
C) 40 days
D) 55 days

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Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
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COMPUTE FOR THE FOLLOWING ACCOUNTS: (THE BALANCE SHEET SHOULD BALANCE) (In Pesos) Annual Credit Sales 1,800,000 Cash 32,720 Gross Profit Margin 25% Marketable Sec. 25,000 Inventory Turnover 6 Accounts Receivable ? No. of days in a year 365 Inventories ? Average Collection Period 45 days Total Current Assets ? Current Ratio 1.6 Net Fixed Assets ? Total Asset Turnover Ratio 1.2 Total Assets ? Debt ratio 60% Accounts Payable 120,000 Notes Payable ? Accruals 20,000 Gross Profit ? Total Current Liabilities ? Long Term Debt ? *ALL SALES ARE CREDIT SALES Stockholders' Equity 600,000 Total Liab. And Equity ?
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