Net sales revenue$345,000$205,000$32,500Cost of goods soldAverage accounts receivableAverage inventory$9.450Average plant, property and equipment$81,250Average total assets$130,000Calculate the company's days to collect for the current year.Multiple Choice91.25 Calculate the company's days to collect for the current year.Multiple Choice91.2584.8857.8434.37

The average collection period refers to how long it takes a business to collect its receivables.…

$345,000 $205,000 $32,500 Net sales revenue Cost of goods sold Average accounts receivable Average inventory $9,450 Average plant, property and equipment $81,250 Average total assets $130,000 alculate the company's days to collect for the current year.

$345,000 $205,000 $32,500 Net sales revenue Cost of goods sold Average accounts receivable Average inventory $9,450 Average plant, property and equipment $81,250 Average total assets $130,000 alculate the company's days to collect for the current year.

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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Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 32,700 $ 37,849 $ 37,130 Accounts receivable, net 94,775 65,580 51,527 Merchandise inventory 120,330 86,659 53,800 Prepaid expenses 10,118 10,034 4,252 Plant assets, net 285,450 268,303 235,991 Total assets $ 543,373 $ 468,425 $ 382,700 Liabilities and Equity Accounts payable $ 138,006 $ 78,372 $ 51,022 Long-term notes payable 100,111 107,738 83,731 Common stock, $10 par value 163,500 163,500 162,500 Retained earnings 141,756 118,815 85,447 Total liabilities and equity $ 543,373 $ 468,425 $ 382,700 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents.2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable?3. Assuming annual sales have not…
The financial statements of New World, Incorporated, provide the following information for the current year: December 31 January 1 Accounts receivable $ 288,000 $ 391,500 Inventory $ 281,250 $ 267,000 Prepaid expenses $ 73,200 $ 70,500 Accounts payable (for merchandise) $ 259,800 $ 251,550 Accrued expenses payable $ 66,150 $ 79,950 Net sales $ 3,172,500 Cost of goods sold $ 1,672,500 Operating expenses (including depreciation of $64,000) $ 382,500 What is New World's net cash flow from operating activities for the current year?
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Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 29,484 $ 34,808 $ 35,907 Accounts receivable, net 84,598 59,105 49,830 Merchandise inventory 104,217 80,494 51,503 Prepaid expenses 9,590 8,775 4,071 Plant assets, net 271,834 247,614 228,789 Total assets $ 499,723 $ 430,796 $ 370,100 Liabilities and Equity Accounts payable $ 124,431 $ 73,533 $ 50,319 Long-term notes payable 94,887 100,074 81,792 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 117,905 94,689 75,489 Total liabilities and equity $ 499,723 $ 430,796 $ 370,100 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the…
Assume a merchandising company had credit sales of $380,000, cost of goods sold of $187,000, and net income of $60,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 39,000 $ 44,000 Income taxes payable $ 13,000 $ 10,000 If the company purchases its merchandise inventory on account, then based solely on the information provided, the company’s cash paid for inventory purchases would be: Garrison 17e Rechecks 2020-10-02 Multiple Choice $189,000. $185,000. $195,000. $179,000.
Subject: acounting
Income statement net sales $51,407.00 cost of products sold $25,076.00 gross profit $26,331.00 marketing, research, administrative exp $15,746.00 Depreciation $758.00 operating income(loss) $9,827.00 Interest expense $477.00 Earnings (loss)before income taxes $9,350.00 Income taxes $2,869.00 Net earnings(loss) $6,481.00 Balance Sheet Assets: Liablilites and Equity: cash and marketable securities $5,469.00 accounts payable $3,617.00 investment securities $423.00 accrued and other liablilties $7,689.00 accounts receivable $4,062.00 taxes payable $2,554.00 inventory $4,400.00 debt due within one year $8,287.00 deffered income taxes $958.00 total current liabilite $22,147.00 prepaid expense and other receivables $1,803.00 long term debt $12,554.00 total current assets $17,115.00 deferrred income taxes…
Sales revenue $104,000 $enter a dollar amount Sales returns and allowances enter a dollar amount 4,000 Net sales 98,000 129,000 Cost of goods sold 64,600 enter a dollar amount Gross profit enter a dollar amount 56,760 Operating expenses 20,400 enter a dollar amount Net income enter a dollar amount 21,930 Calculate the profit margin and the gross profit rate for each company. (Round answers to 1 decimal place, e.g. 75.5%.) Crane Company Sheridan Company Profit margin enter profit margin in percentages rounded to 1 decimal place % enter profit margin in percentages rounded to 1 decimal place % Gross profit rate enter gross profit rate in percentages rounded to 1 decimal place % enter gross profit rate in percentages rounded to 1 decimal place %
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Assume a company had net Income of $72,000 and provided the following excerpts from its balance sheet: This Year Last Year Current assets: $40,000 $53,000 $13,000 $46,000 $50,000 $11,000 Accounts receivable Inventory Prepaid expenses Current liabilities: $38,000 $18,000 $13,000 $44,000 $15,000 $10,000 Accounts payable Accrued liabilities Income taxes payable If the company did not sell any noncurrent assets during the period and the credits to its accumulated depreciation account were $21,000, then based solely on the informatlon provlded, the company's net cash provided by (used in) operating activities would be: Multiple Cholce $94,000. $52,000. $68,000. $92,000.