Classic Company designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The company's products incdu such brands as Polo by Classic, Classic Purple Label, Classic, Polo Jeans Co., and Chaps. Polo Classic reported the following for two recent years: For the Period Ending Year 2 Year 1 $4,795,005 $4,730,400 Sales 543,850 558,450 Accounts receivable Assume that accounts receivable were $492,750 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round your answers to two decimal places. Year 2: Year 1: b. Compute the days' sales in receivables for Year 2 and Year 1. Round your final answers to one decimal place. Use 365 days per year in your calculations. Year 2: days Year 1: days C. The change in the accounts receivable turnover from year 1 to year 2 indicates a(n) decrease v in the efficiency of collecting accounts recei and is a(n) unfavorable v change. The change in the days' sales in receivables is a(n) unfavorable v change.

Classic Company designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The company's products incdu such brands as Polo by Classic, Classic Purple Label, Classic, Polo Jeans Co., and Chaps. Polo Classic reported the following for two recent years: For the Period Ending Year 2 Year 1 $4,795,005 $4,730,400 Sales 543,850 558,450 Accounts receivable Assume that accounts receivable were $492,750 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round your answers to two decimal places. Year 2: Year 1: b. Compute the days' sales in receivables for Year 2 and Year 1. Round your final answers to one decimal place. Use 365 days per year in your calculations. Year 2: days Year 1: days C. The change in the accounts receivable turnover from year 1 to year 2 indicates a(n) decrease v in the efficiency of collecting accounts recei and is a(n) unfavorable v change. The change in the days' sales in receivables is a(n) unfavorable v change.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following information is available from the accounting records of Waxford Ltd.: 19-- January February March April Purchases R42 000 48 000 54 000 36 000 Purchases Total sales Administrative expenses Total sales R72 000 66 000 Twenty percent of sales are expected to be for cash. Collections from customers are normally 70% in the month of sale, 20% in the month following the month of sale, and 9% in the second month following the month of sale. Customers paying in the month of sale get a 5% discount. 78 000 60 000 The corporation pays its creditors in the month following the month of purchase, and qualifies for a 5% discount on all its purchases. Budgeted information for the months of May and June is as follows: May R45 000 72 000 14 500 June R42 000 70 000 16 600 Administrative expenses, which include depreciation of R600 per month, are payable in the month incurred. Rates for the year, amounting to R1 500, are included in the administrative expenses for June. The balance per cash…
I need help with this question problem
Essence of Skunk Fragrances, Limited, sells 4,000 units of its perfume collection each i year at a price per unit of $500. All sales are on credit with terms of 2/10, net 30. The discount is taken by 70 percent of the customers. What is the amount of the company's accounts receivable? Multiple Choice $54,794.52 $83,287.67 $49,315.07 $87671.23 $92.054.79
A company reports the following sales-related information. $ 220,000 Sales returns and allowances 4,400 Sales salaries expense Prepare the net sales portion only of this company's multiple-step income statement. Sales, gross Sales discounts Net sales Multiple-Step Income Statement (Partial) $ 15,000 10,400
there are two question
Russell Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2018 Russell Industry Average Net sales revenue $780,000 100.0 % Cost of goods sold 524,940 65.8 Gross Profit 255,060 34.2 Operating Expenses 162,240 19.7 Operating Income 92,820 14.5 Other Expenses 7,800 0.4 Net Income 85,020 14.1 % MORE INFO: Russell/industry average Total Assets $480,000 100.0 % total Liabilities 327,360 64.7 total Liabilities and Stockholders' Equity $480,000 100.0 % SOLVE for % of total (round total to one decimal place x.x%) Amount Percent of total Net Sales Revenue 780,000 Cost of goods sold 524,940 gross profit 255,060 operating expenses 162240 operating income 92820 other expenses 7800
The problem is stated in the picture. Here is the question: 1. How much is the gross profit for the year?
Thank you.
A. What is the amount of the provision that should be provided for by the company in accordance with IAS 37 based on the scenarios below? i. Somerset Deliveries Plc is an outsourcing company that does deliveries for Several other companies. The company is being sued by a customer for $ 500 000 for breach of contract over a cancelled order. The company has obtained legal opinion that there was a 20% chance that the company will lose the case. Accordingly, the company has made a provision of $100 000 ($500 000 ×20%) in respect of the claim. The unrecoverable legal costs of defending the action are estimated at $50 000.These costs have not been provided for as the case will not go to court until the following year.…
sd
Russell Retail Group begins the year with inventory of $55000 and ends the year with inventory of $45,000. During the year, the company has four purchases for the following amounts. Purchase on February 17 Purchase on May 6 Purchase on September 8 Purchase on December 4 $210,000 130,000 160,000 410,000 Required: Calculate cost of goods sold for the year.
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $800,000 100 % Cost of goods sold 512,000 70 Gross profit $288,000 30 % Selling expenses $176,000 17 % Administrative expenses 64,000 7 Total operating expenses $240,000 24 % Operating income $48,000 6 % Other revenue 16,000 2 $64,000 8 % Other expense 8,000 1 Income before income tax $56,000 7 % Income tax expense 24,000 5 Net income $32,000 2 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers.