Accounts Receivable AnalysisThe following data are taken from the financial statements of Basinger Inc. Terms of all sales are 2/10, n/45.20Y320Y220Y1Accounts receivable, end of year$476,800$420,000$377,000Sales on account4,125,2803,347,400a. For 2012 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round interim calculationsto the nearest dollar and final answers to one decimal place. Assume a 365-day year.1. Accounts receivable turnover2. Number of days' sales in receivables20Y3b. The collection of accounts receivable hasand thein the collection period.20Y2daysdaysThis can be seen in both thein accounts receivable turnover

Formula:Accounts receivable turnover = Net credit sales / Average accounts receivables.Division of…

data are taken from the financial statements of Basinger Inc. Terms of all sales are 2/10, 20Y3 20Y2 20Y1 eivable, end of year $476,800 $420,000 $377,000 ount 4,125,280 3,347,400 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sale est dollar and final answers to one decimal place. Assume a 365-day year. receivable turnover 20Y3 of days' sales in receivables ction of accounts receivable has in the collection period. 20Y2 days days This can be seen in both the

data are taken from the financial statements of Basinger Inc. Terms of all sales are 2/10, 20Y3 20Y2 20Y1 eivable, end of year $476,800 $420,000 $377,000 ount 4,125,280 3,347,400 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sale est dollar and final answers to one decimal place. Assume a 365-day year. receivable turnover 20Y3 of days' sales in receivables ction of accounts receivable has in the collection period. 20Y2 days days This can be seen in both the

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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The following data are taken from the financial statements of Basinger Inc. Terms of all sales are 2/10, n/45. 20Y3 20Υ2 20Υ1 Accounts receivable, end of year $212,000 $226,000 $241,200 Sales on account 1,270,200 1,214,720 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. 20Y3 20Υ2 1. Accounts receivable turnover 2. Number of days' sales in receivables days days b. The collection of accounts receivable has . This can be seen in both the in accounts receivable turnover and the in the collection period.
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The following financial results are shown for Smith, Inc. and Jones, Inc. RatiosSmith, Inc.Jones, Inc.Current ratio2.31.9Acid test ratio1.2.9Accounts receivable turnover8.4 times6.8 timesInventory turnover4.7 times3.1 timesDays sales in inventory64 days799 daysDays sales uncollected34.2 days39.7 daysProfit margin ratio3.2% 4.8% Total asset turnover1.11.8 Return on common stockholder' equity 4.6 %6.1% Price earnings ratio18.310.7Dividend yield.89%.90Debt ratio.62.47Times interest earned2.6 times6.2 times From the above financial data, prepare two separate memos. In the first memo, determine which of the two companies would be the better short-term credit risk and explain why. In the second memo, determine which of the two companies the better investment is and explain why. Your explanations must mention the exact ratios and numbers compared to support your choice. ******Answers and memos must be logically written and no grammatical errors.******* Memo #1: The company I selected as the…
Based on the following data for the current year, what is the days' sales in receivables? Assume 365 days a year. Line Item Description Amount Sales on account during year $444,688 Cost of goods sold during year 188,576 Accounts receivable, beginning of year 45,189 Accounts receivable, end of year 51,774 Inventory, beginning of year 80,151 Inventory, end of year 112,830 Round your answer up to the nearest whole day.
Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Υ1 Accounts receivable, end of year $113,600 $120,000 $128,200 Sales on account 829,280 781,830 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. 20Υ3 20Y2 1. Accounts receivable turnover 2. Number of days' sales in receivables days days
A company reports the following: Sales $315,360 Average accounts receivable (net) 39,420 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables
The following are ABM Store's year-end balances of selected accounts: Cash, P200,000.00; Sales, P185,000.00; Sales Discount, P5,000.00; Cost of Goods Sold, P80,000.00; Operating Expenses, P40,000.00. a. How much is the net sales? b. How much is the gross profit? C. How much is the net income?
The financial statements of the Novak Corp. report net sales of $300000 and accounts receivable of $55200 and $27600 at the beginning of the year and the end of the year, respectively. What is the average collection period for accounts receivable in days? (Use 365 days for calculation.)
A company reports the following: Sales $890,600 Average accounts receivable (net) 44,530 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover 20 b. Number of days' sales in receivables 18 X days
ces Given the following information, complete the balance sheet shown next. Collection period Days' sales in cash Current ratio Inventory turnover Liabilities to assets Payables period Assets Current assets: Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets (All sales are on credit. All calculations assume a 365-day year. The payables period is based on cost of goods sold.) Note: Round your answers to the nearest whole dollar. Liabilities and shareholders' equity Current liabilities: 71 days 33 days 2.2 times Accounts payable Short-term debt Total current liabilities Long-term debt Shareholders' equity Total liabilities and equity 5 65% 35 days $ $ 1,300,000 2,000,000 7,000,000
The financial statements of the Sheffield Corp. reports net sales of $690150 and accounts receivable of $98000 and $31000 at the beginning of the year and end of year, respectively. What is the accounts receivable turnover for Sheffield Corp.? O 22.3 times O 5.4 times O 7.0 times O 10.7 times