At year-end, Rapid Airlines had negative net working capital of $(3,519) million and current assets of $6,747 million. The firm's current liabilities are: Select one: O a. There is not enough information to calculate the amount. b. $3,228 million c. $10,266 million d. $7,854 million e. $3,519 million . O O

At year-end, Rapid Airlines had negative net working capital of $(3,519) million and current assets of $6,747 million. The firm's current liabilities are: Select one: O a. There is not enough information to calculate the amount. b. $3,228 million c. $10,266 million d. $7,854 million e. $3,519 million . O O

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...

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You are considering two possible companies for investment purposes. The following data is available for each company. Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet method is 10%. The $230,000 in Other Expenses includes all company expenses except Bad Debt Expense. Company B: Bad debt estimation percentage using the income statement method is 6.5%, and the balance sheet method is 8%. The $140,000 in Other Expenses includes all company expenses except Bad Debt Expense. A. Compute the number of days sales in receivables ratio for each company for 2019 and interpret the results (round answers to nearest whole number). B. If Company A changed from the income statement method to the balance sheet method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). C. If Company B changed from the balance sheet method to the income statement method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). D. What benefits do each company gain by changing their method of bad debt estimation? E. Which company would you invest in and why? Provide supporting details.
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Denver, Incorporated, has sales of $24 million, total assets of $21.6 million, and total debt of $6.9 million. Assume the profit margin is 8 percent. a. What is the company's net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) b. What is the company's ROA? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the company's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Net income b. ROA c. ROE 1,920,000 % %
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