e Collection period 21.9
Q: How do you compute the receivables turnover ratio?
A: Receivables turnover (RT) ratio: this is an accounting measure which shows the effectiveness of a…
Q: Select the term that best fits each of the following definitions and descriptions. a. Notes…
A: There are varied terms used in accounting in day-to-day operations. They have a standard meaning…
Q: are used to measure the speed in which various accounts are converted into sales or cash. Select…
A: By analyzing financial accounts such as the balance sheet and income statement, ratio analysis is a…
Q: Expressing accounts receivable as a percentage of total assets is an example ofa. ratio analysis.b.…
A: Accounts receivable is an asset account. It is reported in the balance sheet under the assets…
Q: Which of the following is a positive sign that a company can quickly turn its receivables into cash?…
A: Receivable turnover ratio shows the effectiveness of a company to extend its credit and also in…
Q: _____________ are used to measure the speed in which various accounts are converted into sales or…
A: Ratio analysis is a financial technique to measure the financial position of the company. It is the…
Q: Bills payable and promissory notes are negotiable instruments and are used mostly to replace_____…
A: Bills Payable and promissory notes are negotiable instruments issued for accounts payables. These…
Q: Which of the following is NOT commonly regarded as being a credit policy variable? * Collection…
A: “Since you have asked multiple question, we will solve one question for you. If you want any…
Q: Calculate current ratio, quick ratio and receivable turnover ratio
A: Current assets = 38,761 Current liabilities = 6,850 Inventory = 6,300 Prepaid expense = 800 Average…
Q: What is the meaning of present value of notes receivable.
A: To understand the present value of notes receivable, first we need to understand what note…
Q: The method of estimating uncollectible accounts that has the advantage of presenting accounts…
A: Uncollectable Accounts Receivables: A debtor's receivables, loans, or other obligations that are…
Q: Consider each of the following situations independently of each other. For each of the situations…
A: Current ratio increases from one period to the next An increase in the current ratio may be due to…
Q: 4. Which of the following is not a quick asset? c. Accounts Receivable d. Inventory a. Cash b. Cash…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: What does the accounts receivable turnover ratio measure, and how is it calculated?
A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…
Q: What kind of business would have a short duration of receivables collection?
A: The low collection time is typically more appealing than the long collecting period. The fact that…
Q: How is the receivables turnover ratio measured? What does this ratio indicate? Is a higher or lower…
A: Receivables turnover ratio is measured by dividing net credit sales of a period by average accounts…
Q: In analyzing the financial statements which are given can you please compute the following ratios:…
A: The receivables turnover ratio is used by the company to calculate its efficiency in collecting…
Q: The APR is a. the average annual percentage cost paid on deposits b. the average rate paid on…
A: The APR is (c) the average rate paid for credit
Q: Concerning factoring, all of the following are true except? * factoring is done at a…
A: Introduction: Factoring is a form of financing in which a company sells its accounts receivable…
Q: Which of the following is/are a sign that a company can quickly turn its receivables into cash (may…
A: The correct option with proper explanation of above question are as follows
Q: The higher the receivables turnover, the O higher the collection period. O more liquid the company's…
A: Accounts receivables turnover measures the number of times the accounts receivables are recovered.…
Q: What two purposes do firms achieve by estimating future uncollectible accounts?
A: What two purposes do firms achieve by estimating future uncollectible accounts?
3. What could be the interpretation of the average collection period between Boswell Inc. and Kimye Inc.
a. Boswell's receivables are slightly more liquid than Kimye's receivables
b. Kimye's receivables are slightly more liquid than Boswell's receivables
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- MC Qu. 9-80 Rainbow, Inc. began operations on January... Rainbow, Inc. began operations on January 1 of the current year with a $12,800 cash balance. Fifty percent of sales are collected in the month of sale; 50% are collected in the month following sale. Similarly, 10% of purchases are paid in the month of purchase, and 90% are paid in the month following purchase. The following data apply to January and February: January February Sales $ 43,000 $ 63,000 Purchases 34,000 48,000 Operating expenses 7,800 9,800 If operating expenses are paid in the month incurred and include monthly depreciation charges of $3,300, determine the change in Rainbow’s cash balance during February. Multiple Choice $7,800 increase. $11,100 increase. $16,900 increase. $20,200 increase. None of the answers is correct.Fernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:1. Anticipated cash receipts from accounts receivable in August.Fernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:2. Anticipated total cash available from all sources in August.3. August cash payments for purchases made in July and August.
- Fernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:4. Anticipated cash balance on August 31.D3 Company marks up all merchandise at 25% of gross purchase. All purchases are made on accountwith terms of 1/10, net/60. Purchase discounts which are recorded as miscellaneous income are alwaystaken. Normally, 60% of each month’s purchases are paid for in the month of purchase, while the other40% are paid during the first 10 days of the first month after purchase. Inventories of merchandise atthe end of each month are kept at 30% of the next month’s projected cost of goods sold.Terms for sales on account are 2/10, net/30. Cash sales are not subject to discount. Fifty percent ofeach month;s sales on account are collected during the month of sale, 45% are collected in thesucceeding month and the remainder are usually uncollectible. Seventy percent of the collections in themonth of sale are subject to discount while 10% of the collections in the succeeding month are subjectto discount.Projected sales data for selected month follow:Sales on Account Gross Cash salesDecember P1,900,000…Chapter 17 Revenue and expense data for the current calendar year for Smith Electronics Company and for the electronics industry are as follows. The Smith Electronics Company data are expressed in dollars. The electronics Industry averages are expressed in percentages. Smith Electronics Electronics Industry Company Average $3,142,000 103.0% Sales 3.0% 150,000 Sales returns and allowances $2,992,000 100.0% Net sales 60.0% 1,850,000 Cost of goods sold 40.0% $1,142,000 Gross profit $750,000 23.0% Selling expenses 257,000 10.0% Administrative expenses 33.0% $1,007,000 Total operating expenses 7.0% $135,000 Operating income Other income 50,000 1.5% $185,000 8.5% 42,500 1.0% Other expense Income before income tax $142,500 7.5% Income tax expense 5.0% 76,000 $66,500 Net Income 2.5% a. Prepare a common-sized income statement comparing the results of operations for Smith Electronics Company with the industry average Round to one decimal place. b. As far as the data permit, comment on…
- Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per UnitSales. . . . . . . . . . . . . . . . . . . . . . . . $450,000 $30Variable expenses . . . . . . . . . . . . . 180,000 12Contribution margin . . . . . . . . . . . . 270,000 $18Fixed expenses. . . . . . . . . . . . . . . . 216,000Net operating income . . . . . . . . . . . $ 54,000 Required: 1. What is the monthly break-even point in units sold and in sales dollars? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3. How many units would have to be sold each month to earn a target profi t of $90,000? Use the formula method. Verify your answer by preparing a contribution format income statement at the target sales level.4. Refer to the original data. Compute the company’s margin of safety in both dollar and percentage terms. 5. What is the company’s CM ratio? If sales increase by $50,000 per month and there is no change in fi…5. Cash collections for Wax On Candles found that 60% of sales were collected in the month of the sale, 30% was collected the month after the sale, and 10% was collected the second month after the sale. Nov. Dec. Jan. Feb. $25,000 $35,000 $20,000 $25,000 PLEASE NOTE: All dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). If no dollar amount is needed, please use "$0" - no quotation marks. Given the collection information and sales shown, complete the cash collections schedule below to determine how much cash will be collected in January and February Wax On Candles Cash Collections Schedule For January and February, 2019 January February November ? ? December ? ? January…1. Bowa Construction's days sales outstanding is 50 days (on a 365-day basis). The company's accounts receivable equal P100 million and its balance sheet shows inventory equal to P125 million. What is the company's inventory turnover ratio? E. 7.25 А. 2.75 B. 3.33 C. 4.25 D. 5.84 2. AB Company's budgeted sales and cost of sales for the coming year are P72 million and P45 million respectively. Short term interest rates are expected to average 10%. If the company can increase inventory turnover from its current level of 9 times per year to 12 times per year, its cost savings in the coming year are expected to be A. P125,000 В. Р300,000 C. P375,000 D. P500,000 3. BMC Co. has an average A/R balance of P1,250,000, average inventory balance of P1,750,000, and average accounts payable balance of P800,000. Its annual sales are P12,000,000 and its cost of goods sold represents 80% of annual sales. Assume there are 365 days in a year. What is BMC Co.'s cash conversion cycle? A. 53.23 days B.…
- 34Calculate LTM (last twelve months) 9/30/2012 sales given the information below Sales data in millions YTD 9/30/2012 sales YTD 9/30/2011 sales YTD 9/30/2010 sales 2011 sales 2010 sales $1,900.7 $2,000.5 $2,100.0 Ⓒ$2,400.0 $1,600.0 1,450.0 1,375.0 2,250.0 2,000.024 - 25Sales for the year amount to PHP100.000. Accounts receivable amount to PHPT2,000. What is the average collection period assuming annual data are used? What is the average collection period assuming quarterly data are used? 26 - 28 The quick ratio is 1.7 while the current ratio is 2.5. The current liabilities amount to PHP5,000. Cost of goods sold is PHP52,500. What is the inventory turnover? Average age of inventory? 29 - 31. Beginning inventory is PHP2,000 while ending inventory is PHP5,000. Cost of goods sold is double the ending inventory and accounts payable is PHP4,000. What is accounts payable turnover? Average payment period? ESSAY 32 - 34. Ending inventory is PHP13,000 while accounts payable is PHP2,500. Purchases were half the ending inventory. What is accounts payable turnover? Average age of payables? 35 - 37 Current assets amount to PHP30,000 while noncurrent assets are PHP50,000, Sales amount to PHP200,000. What is the total asset turnover? 38 - 40. Based on your…