Cola Inc. and Soda Co. are two of the largest and most successful beverage companies in the world in terms o sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the amounts reported in their annual reports (amounts in millions). Soda Co. Cola Inc. 2014 2013 2015 2014 2013 2015 $61,938 $47,432 $47,251 6,547 152 Fiscal Year Ended: $39,319 $35,190 $35,944 3,893 Net Sales 4,794 3,864 4,578 3,221 Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 56 63 59 98 78 4,522 3,830 3,162 6,395 4,696 3,786 Required: 1. Calculate the receivables turnover ratios and days to collect for Cola Inc. and Soda Co. for 2015 and 2014. (Us Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Rouncd your final answers Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) 2015 2014 Cola Inc. Soda Co. Cola Inc. Soda Co. Receivables Turnover Ratio Days to collect

Cola Inc. and Soda Co. are two of the largest and most successful beverage companies in the world in terms o sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the amounts reported in their annual reports (amounts in millions). Soda Co. Cola Inc. 2014 2013 2015 2014 2013 2015 $61,938 $47,432 $47,251 6,547 152 Fiscal Year Ended: $39,319 $35,190 $35,944 3,893 Net Sales 4,794 3,864 4,578 3,221 Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 56 63 59 98 78 4,522 3,830 3,162 6,395 4,696 3,786 Required: 1. Calculate the receivables turnover ratios and days to collect for Cola Inc. and Soda Co. for 2015 and 2014. (Us Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Rouncd your final answers Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) 2015 2014 Cola Inc. Soda Co. Cola Inc. Soda Co. Receivables Turnover Ratio Days to collect

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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es Fizzy Sodas and Hayes Companies are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 2018 $ 40,630 4,410 620 3,790 Fizzy Sodas 2017 $ 45,120 4,710 610 4,100 2016 $ 47,640 4,930 600 4,330 2018 $ 82,416 8,240 100 8,140 Hayes Companies 2017 $82,945 8,150 130 8,020 Required: 1. Calculate the receivables turnover ratios and days to collect for Fizzy Sodas and Hayes Companies for 2018 and 2017. 2-a. Which of the companies was quicker to convert its receivables into cash in 2018? 2-b. Which of the companies was quicker to convert its receivables into cash in 2017? 2016 $ 71,470 7,770 140 7,630
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Nathalie Drug Store had net credit sales of P6,000,000 and cost of goods sold of P2,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were P350,000 and P250,000, respectively. The accounts receivable turnover ratio was * a. 10.0 times. b. 17.1 times. c. 13.3 times. d. 20.0 times.
JC Penney has sales of $897,400, costs of goods sold of $628,300, inventory of $208,400, and accounts receivable of $74,100. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? 84.76 days 121.07 days 74.19 days 151.21 days 138.46 days
(8 Problems 1) On January 1, 2021, Cali Consulting has a $110,000 balance in accounts receivable and a $0 balance in the Allowance for Uncollectible Accounts. During 2021, Cali provides $205,000 of service on account. The company collected $190,000 cash from Accounts Receivable. Uncollectible accounts are estimated to be 3% of sales on account. a. What is the amount of uncollectible accounts expense recognized in 2021? b. What is the amount of cash flows from Operating activities that would appear on the 2021 Cash Flow statement? Show the impact (with amounts) of each of the following items on the horizontal C. Oquation. For the asset section, name the specific accounts impacted. i. Record Sales during the year on account of $205,000. ii. Show the impact of $190,000 cash collected during the year. ii. Establish an Allowance for Uncollectible Accounts at year-end. 3. Study guide - Chapter 5 (with solutions).docx O A 69°F P. f5 f12 6J prt sc I14 &
1. A company, extends credit to its customers. Total Sales is 2 Million, credit Sales is 850,000, Sales Return is 305,000, with percent of uncollectibility set at 4% What is the journal entry under percentage of net credit sales?
K Accounts receivable management This table, shows that Blair Supply had an end-of-year accounts receivable balance of $300,000. The table also shows how much of the receivables balance originated in each of the previous six months. The company had annual sales of $2.40 million and it normally extends 30-day credit terms to its customers. a. Use the year-end total to evaluate the firm's collection system. b. If 70% of the firm's sales occur between July and December, would this affect the validity of your conclusion in part a? Explain. a. The average collection period is days. (Round to two decimal places.)
Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2025 are presented below. Cash and cash equivalents Accounts receivable (net) Inventory Other current assets Total current assets Total current liabilities End of Year Current ratio: $740 2,080 Accounts receivable turnover Average collection period 860 650 $4,330 $2,010 Beginning of Year $79 1.900 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by opcing activities was $1,251 million. 890 Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover, and days in inventory for the current year. (Round current ratio to 2 decimal places, eg 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation) 371 $3,240 $1,640 :1 times days C
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Please Solve This Question 1. Medwing Corporation has a DSO of 19 days. The company averages 5,500 in credit sales each day. What is the company’s average accounts receivable?