Provide correct solution for this accounting question Flo's Flowers has accounts receivable of $4,511, inventoryof $1,810 sales of $138,609, and cost of goods sold of$64,003. How many days does it take the firm to sell itsinventory and collect the payment on the sale assumingthat all sales are on credit?a) 22.20 daysb) 18.67 daysc) 11.88 daysd) 14.50 dayse) 16.23 days

Step 1:- Define Operating CycleOperating cycle is the sum of inventory period ( or days inventory…

Answered: Flo's Flowers has accounts receivable…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 8PA: The following select financial statement information from Candid Photography. Compute the accounts...

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American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?
Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Medwig Corporation has a DSO of 17 days. The company averages 3,500 in sales each day (all customers take credit). What is the companys average accounts receivable?
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
The following select financial statement information from Candid Photography. Compute the accounts receivable turnover ratios and the number of days sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Candid Photography if industry average for accounts receivable turnover ratio is 3 times and days sales in receivables ratio is 150 days?
The Up-Towner has sales of $913,400, costs of goods sold of $579,300, inventory of $123,900, and accounts receivable of $78,900. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? A) 74.19 days B) 84.69 days C) 78.07 days D) 96.46 days E) 71.01 days
Blackwell Co. has credit sales of $317,428, costs of goods sold of $151,217, and average accounts receivable of $28,744. How long on average does it take the firm's credit customers to pay for their purchases? Multiple Choice 33.05 days 27.99 days 31.37 days 29.95 days 38.23 days
ABC Industries has accounts receivable of $700, inventory of $1,200, sales of $4,200, and cost of goods sold of $3,500. How long does it take ABC to both sell its inventory and then collect the payment on the sale? 125 days 145 days 210 days 110 days 131 days
The Carhart Corporation sells on credit terms of net 25. Its accounts are, on average, 8 days past due. If annual credit sales are $6 million, what is the company's balance sheet amount in accounts receivable? Multiple Choice O $569,589.04 O $515,342.47 O $279,452.05
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
Terry's hardware normally takes 27 days to pay for average daily credit purchases of $9,530. Its average daily sales are $10,680, and it collects accounts in 32 days. A. What is its net credit position? Compute its account receivable and accounts payable and subtract the latter from the former. Accounts receivable = Average daily credit sales x Average collection period Accounts payable = Average daily credit purchases x Average payment period B. If the firm extends its average payment period from 27 days to 37 days (all else remains the same), what is the firm's new net credit position? Has it improved its cash flow?

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