Financial Accounting need help this question Ace, Inc. shows the following data on its 2023 financial statements:ItemAccounts Receivable, January 1Accounts Receivable, December 31Amount ($)$800,000$1,050,000Merchandise Inventory, January 1$950,000Merchandise Inventory, December 31$1,100,000Gross Sales$5,400,000Sales Returns and Allowances$200,000Net Sales$5,200,000Cost of Goods Sold (COGS)$3,750,000Income Before Interest and Taxes$800,000Interest on Bonds$220,000Net Income$450,000What is the Accounts Receivable Turnover Ratio for Ace, Inc.?

Step 1:First calculate the average accounts receivable: Average accounts receivable = (Beginning…

Answered: Ace, Inc. shows the following data on…

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

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
The following information is shown in the accounting records of ToDas Company for the current year 2020. Balances as of Jan 1 Cash 620,000; Accounts receivable 670,000; Inventory 860,000; Accounts Payable 530,000. Balances as of Dec 31 Accounts receivable 900,000; Inventory 780,000; Accounts Payable 480,000. The total sales and cost of goods sold were P7,980,000 and P5,830,000, respectively. All sales and all merchandise purchases were made on credit. Various expenses of P1,070,000 were paid on cash. Assume that there were no other pertinent transactions. The cash balance on December 31, 2020
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The following selected account balances were taken from Buckeye Company's general ledger at January 1, 2019 and December 31, 2022: Accounts receivable Inventory Sales revenue Cost of goods sold January 1 $126,000 $163,000 The following information was taken from Buckeye Company's 2022 income statement: Salaries expense Income tax expense Net income December 31 $139,000 131,000 $967,250 $429, 240 $211,390 $ 97,986 $228,634 Calculate the average number of days that elapse between Buckeye Company buying their inventory from suppliers and then selling the inventory to customers.
The following data were obtained from the books of JOYFUL CORPORATION: Accounts receivable, March 31, 2021 – P110,000; Accounts receivable, September 30, 2021 – P130,000; Purchases, March to September 2021 – P450,000; Inventory, March 31, 2021 – P180,000; Average gross profit rate – 40%; Accounts receivable turnover – 6 to 1. The Inventory at September 30, 2021 should be ______. A. 198,000B. 150,000C. 120,000d. None of these
The following data were obtained from the books of JOYFUL CORPORATION: Accounts receivable, March 31, 2021 – P110,000; Accounts receivable, September 30, 2021 – P130,000; Purchases, March to September 2021 – P450,000; Inventory, March 31, 2021 – P180,000; Average gross profit rate – 40%; Accounts receivable turnover – 6 to 1. The Inventory at September 30, 2021 should be ______. A. 198,000B. 150,000C. 120,000
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Peter Company reported the following amounts for the year ended 31 December 2020: Inventory at 1 January 2020 $189,000 Inventory at 31 December 2020 $284,250 Sales $2,100,000 Sales discounts $45,000 Purchases $780,000 Loss on sale of investment $13,500 Purchase returns and allowances $16,500 Sales returns and allowances $41,250 Transportation-in $28,530 Interest expenses $9,000 Selling expenses $241,650 Administrative expenses $193,320 Loss from operations of a discontinued division $225,000 Gain on disposal of a discontinued division $170,000 Loss on disposal of part of the retail division $7,500 Rent revenue $180,000 Retained earnings at 1 January 2020 $1,485,000 Additional information: (1)Depreciation on a delivery van had not been recorded for years 2019 and 2020 as at 31 December 2020. The van was purchased on 1 July 2019 at a cost of $200,000. The residual value and useful life were estimated to be $10,000 and 5 years respectively. Double-declining balance method is to be used…
A company reports the following financial information: Inventory, December 31, 2021 Inventory, December 31, 2022 Net Sales for 2022 Cost of Goods Sold for 2022 The company's days' sales in inventory is closest to 54 days O 68 days O 114 days O 91 days $ 75,000 125,000 850,000 400,000
Excerpts from Huckabee Company's December 31, 2024 and 2023, financial statements are presented below: 2024 2023 Accounts receivable $ 80,000 $ 72,000 Merchandise inventory 58,000 72,000 Net sales 400,000 372,000 Cost of goods sold 240,000 220,000 Huckabee's 2024 average collection period (rounded) is:
The financial statements of Crane, Inc's. 2025 annual report disclose the following information: (in millions) May 24, 2025 $250 ttempt in Progress Inventories Sales Cost of goods sold Net income (a) (b) 2025 Fiscal Year $3,900 1,300 320 May 25, 2024 $240 Inventory turnover 2024 $3,900 1,300 Compute Crane's (a) inventory turnover and (b) the average days to sell inventory for 2025 and 2024. (Round inventory turnover to 2 decimal places, e.g. 7.63 and average days to sell inventory to 1 decimal place, e.g. 65.1.) 300 Average days to sell inventory May 26, 2023 $200 2025 times days 2024 times days
Judon Corp. provides the following information from its annual report. Assume all revenues are credit sales. The cost of revenues can be used as an approximation of the company's purchases for the year. Revenues $ 546,190 Cost of revenues $ 340,275 Inventories as of 31 January 2022 $44,064 Inventories as of 31 January 2021 $41,020 Accounts payable as at 31 January 2022 $58,600 Accounts payable as at 31 January 2021 $51,800 Accounts receivable as at 31 January 2022 $7,482 Accounts receivable as at 31 January 2021 $5,434 Compute the following financial ratios for Judon Corp for 2022 1. Account Receivable Turnover Ratio (Times)? 2. Collection Interval (DSO) / Days? 3. Inventory Turnover Ratio (Times) ? 4. Holding Interval (Days) ? 5. Account Payable Turnover Ratio (Times)? 6.Payment Interval (Days)? 7. Does Judon Corp need short-term financing?

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