A corporation has a net income of $320,000, a profit margin of 8%, and accounts receivable balance of $240,000. Assuming 70% of sales are not credit, what is the corporation's days' sales in receivable?

A corporation has a net income of $320,000, a profit margin of 8%, and accounts receivable balance of $240,000. Assuming 70% of sales are not credit, what is the corporation's days' sales in receivable?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

See similar textbooks

Related questions

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: Step 1: Definition of Book Value and Cash Received Book value of an asset is the original cost minus…

Q: Can you solve this general accounting question with accurate accounting calculations?

A: Step 1: Definition of Accounts Receivable Level (Based on DSO)Days Sales Outstanding (DSO) is a…

Q: Can you explain the process for solving this general accounting question accurately?

A: Step 1: Define Gross ProfitGross Profit is the difference between Net Sales Revenue and Cost of…

Q: Can you help me solve this financial accounting problem using the correct accounting process?

A: Step 1: Definition of Manufacturing OverheadManufacturing Overhead includes all indirect costs…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: Step 1: Definition of Pro Forma Net IncomePro forma net income is an estimate of a company's future…

Q: What is the contribution margin ratio ?

A: Provided Data:Sales = $612,000Variable Cost Percentage = 49% of salesFixed Costs = $142,000Step 1:…

Q: Please explain the solution to this general accounting problem with accurate explanations.

A: Step 1: Define Cash Collections from CustomersCash collected from customers refers to the actual…

Q: Need answer the general accounting question

A: Step 1: Definition of Labor Efficiency VarianceLabor Efficiency Variance measures the difference…

Q: Can you help me solve this general accounting problem with the correct methodology?

A: Step 1: Definition of Predetermined Overhead RateThe Predetermined Overhead Rate (POHR) is used to…

Q: Please provide the correct answer to this financial accounting problem using valid calculations.

A: Step 1: Define Gross ProfitGross Profit is the difference between net sales and cost of goods sold…

Q: Can you explain the correct methodology to solve this general accounting problem?

A: Step 1: Definition of Direct Labor Price VarianceDirect Labor Price Variance measures the difference…

Q: Subject - General account

A: To calculate the net realizable value (NRV) of Oceanic Inc.'s accounts receivable as of December 31,…

Q: Skyline Co. had total assets of $85,000 and total liabilities of $50,000 at the beginning of the…

A: Step 1: Definition of EquityEquity represents the ownership interest of shareholders in a company.…

Q: The Wisco Company has a process cost system. All materials are added when the process is first…

A: Step 1: Definition of Equivalent UnitsEquivalent units are a concept used in process costing to…

Q: A firm has an asset with a market value of $10,000 and a book value of $4,000. If its marginal tax…

A: Step-by-Step Calculation:Step 1: Calculate the Gain on SaleGain = Market Value − Book Value…

Q: I am looking for the correct answer to this financial accounting question with appropriate…

A: Step 1: Definition of Direct Labour Time VarianceDirect labour time (or efficiency) variance…

Q: Please provide the solution to this general accounting question with accurate financial…

A: Step 1: Definition of High-Low MethodThe High-Low Method is a widely used technique in managerial…

Q: At the beginning of the year, Alamo Trading's liabilities equal $125,000. During the year, assets…

A: Provided Data:Beginning liabilities = $125,000Assets increased by = $95,000Ending assets =…

Q: General Accounting: PJ Ceramics Workshop uses batch costing: Raw materials: Base cost $175/batch,…

A: Explanation of Batch Costing: Batch costing is an accounting method used when products are…

Q: Give me Answer

A: page 1page 2

Q: Please explain this financial accounting problem by applying valid financial principles.

A: Step 1: Define Debt-to-Equity RatioThe Debt-to-Equity Ratio is a financial leverage ratio that…

Q: I am trying to find the accurate solution to this general accounting problem with the correct…

A: Step 1: Definition of GoodwillGoodwill is an intangible asset that arises when a buyer acquires an…

Q: I need assistance with this general accounting question using appropriate principles.

A: Step 1: Definition of Accounts Receivable Turnover RatioThe Accounts Receivable Turnover Ratio…

Q: Compute the materials quantity variance

A: Explanation of Standard Cost: Standard cost is a predetermined estimate of what a product or service…

Q: The company's average day's to collect receivable?

A: Explanation of Accounts Receivable Turnover:Accounts receivable turnover is a financial ratio that…

Q: Please provide the answer to this financial accounting question with proper steps.

A: Step 1: Definition of Stockholders' EquityStockholders' Equity (also known as shareholders' equity…

Q: What is the ending inventory?

A: Explanation of Beginning Inventory:Beginning inventory refers to the value of inventory that a…

Q: King, Laing and Martin LLP in Trinidad and Tobago wanted to register for VAT. All of the following…

A: In Trinidad and Tobago, the Value Added Tax (VAT) registration process is governed by the Board of…

Q: Could you explain the steps for solving this general accounting question accurately?

A: Step 1: Definition of Debt-to-Equity RatioThe Debt-to-Equity (D/E) Ratio is a financial leverage…

Q: Please explain the solution to this general accounting problem with accurate principles.

A: Step 1: Definition of Net SalesNet Sales refers to the total revenue from sales, after accounting…

Q: Mr. Johnson is subject to the supervision, direction and control of another person. He holds an…

A: Firstly, we need to understand the nature of the contract Mr. Johnson is involved in. The question…

Q: Please provide the accurate solution to this financial accounting question using valid calculations.

A: Step 1: Define Rate of ReturnThe rate of return measures the gain or loss made on an investment…

Q: Can you help me solve this general accounting question using valid accounting techniques?

A: Step 1: Definition of Revenue EarnedRevenue earned refers to the total income generated by a…

Q: Crisp Waters has the following assets and liabilities: Accounts Receivable ($750), Equipment…

A: Explanation of Liabilities:Liabilities are obligations that a company owes to outside parties, such…

Q: Please provide the accurate answer to this general accounting problem using appropriate methods.

A: Step 1: Definition of Gross Pay (One-Half Average Rate Method)Gross pay is the total amount an…

Q: What is the gross profit for the period?

A: Explanation of Gross Profit: Gross profit represents the difference between a company's sales…

Q: Please provide the answer to this general accounting question using the right approach.

A: Step 1: Define Gross Margin RatioThe gross margin ratio measures the percentage of net sales that…

Q: Please explain this financial accounting problem by applying valid financial principles.

A: Step 1: Define Stockholders' EquityStockholders' equity represents the owners' claim after all…

Q: Please help me solve this general accounting question using the right accounting principles.

A: Step 1: Definition of Fixed Manufacturing CostFixed manufacturing costs are the portion of…

Q: Determine the rate earned on total assets.

A: Provided Data:Net income = $198,000Interest expense = $17,500Average total assets = $1,250,000Step…

Q: I am trying to find the accurate solution to this general accounting problem with appropriate…

A: To compute dividend yield, use the formula:Dividend Yield = (Dividends per Share / Market Price per…

Q: How can I solve this financial accounting problem using the appropriate financial process?

A: Step 1: Definition of Dollar Return on Investment Dollar return on investment refers to the absolute…

Q: Please provide the answer to this general accounting question with proper steps.

A: Step 1: Definition of Standard CostA standard cost is a predetermined cost for manufacturing a…

Q: I need the correct answer to this general accounting problem using the standard accounting approach.

A: Step 1: Definitions Concept of Current Ratio:Current Ratio is a liquidity ratio that measures a…

Q: Can you solve this general accounting problem with appropriate steps and explanations?

A: Step 1: Definition of Equity MultiplierThe Equity Multiplier is a financial leverage ratio that…

Q: Hello tutor

A: Step 1: Definition of Trial Balance (Debit Column)A Trial Balance is a summary of all ledger…

Q: I am looking for the correct answer to this general accounting problem using valid accounting…

A: To compute the absorption cost per unit, we include:Direct laborDirect materialsVariable…

Q: Please explain the correct approach for solving this general accounting question.

A: Step 1: Definition of Inventory Days of Supply (DOS)Inventory Days of Supply (DOS) indicates how…

Q: Can you provide the valid approach to solving this financial accounting question with suitable…

A: Step 1: Define Cash Collection PatternA cash collection pattern outlines when sales revenue is…

Q: Please provide the accurate answer to this financial accounting problem using appropriate methods.

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) refers to the direct costs…

Question

Get correct answer with accounting question

A corporation has a net income of $320,000, a profit margin of 8%, and
accounts receivable balance of $240,000. Assuming 70% of sales are not
credit, what is the corporation's days' sales in receivable?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Can you demonstrate the accurate method for solving this financial accounting question?
Please answer me this accounting question
What is the company's ROE on this general accounting question?
Answer this Financial Accounting
What is Highfield profit margin? General accounting
A company has the following income statement. What is its net operating profit after taxes (NOPAT)? Round it to a whole dollar. Sales $ 1,200 Costs 600 Depreciation 170 EBIT $ ? Interest expense 50 EBT $ ? Taxes (20%) ? Net income $ ?
A company's gross sales are $120,000, with $5,000 in returns and allowances. What are the net sales? A) $115,000 B) $120,000 C) $125,000 D) $110,000
The annual sales of a company are $235,000 including sales tax at 17.5%. Half of the sales are on credit terms; half are cash sales. The receivables in the statement of financial position are $23,500. What are the receivable days (to the nearest day)?
Selected information from the annual financial statements of Delicata Industries is shown below. ($ in thousands) Revenue Operating income Net other income(expense) Net income 240,000 5,600 196,480 Average operating assets 4,200,000 Average operating liabilities 1,800,000 Current Financials $1,500,000 Delicata has an income tax rate of 20%. a. What is Delicata's net operating profit after taxes (NOPAT) for the year? $0 b. Calculate Delicata's net operating profit margin (NOPM) for the year. Result Numerator + Denominator = 0 + $ 0 = NOPM $ c. Calculate Delicata's return on net operating assets (RNOA) for the year. Numerator + Denominator = Result 0 + $ 0 = RNOA $ 96
What is the basic earning power of this accounting question?
Calculate economic profit based on the following information: WACC = 7.60%; Total Assets = $1,366; Net Income = $266; EBIT = $327; Payroll Payable = $20; Total Equity = $1,395; Rate = 10%; Cash = $66; Accounts Payable = $25; Bank Debt with interest rate of 7% = $45. (Hint: Accounts Payable and Payroll Tax Payable are the only non-interest bearing liabilities). O 15.85% O 13.60% O 14.28% O 15.04% O 11.58% O 13.50% O-13.50% O 23.45% O -7.60% O-15.85% O 13.85%
What is the net income of this accounting question?