For its most recent year, a certain company had sales (all on credit) of $830,000 and the cost of goods sold of $525,000. At the beginning of the year, its accounts receivable were $80,000 and its inventory was $100,000. At the end of the year, its accounts receivable were $86,000 and its inventory was $110,000. On average, how many days of sales were in Accounts Receivable during the year? a. 27 b. 37 c. 49

For its most recent year, a certain company had sales (all on credit) of $830,000 and the cost of goods sold of $525,000. At the beginning of the year, its accounts receivable were $80,000 and its inventory was $100,000. At the end of the year, its accounts receivable were $86,000 and its inventory was $110,000. On average, how many days of sales were in Accounts Receivable during the year? a. 27 b. 37 c. 49

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
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 inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
For its most recent year, a certain company had sales (all on credit) of $830,000 and cost of goods sold of $525,000. At the beginning of the year, its accounts receivable were $80,000 and its inventory was $100,000. At the end of the year, its accounts receivable were $86,000 and its inventory was $110,000. What is the accounts receivable turnover ratio for the year? a. 6.3 b. 7.5 c. 10.0
For its most recent year a company had Sales (all on credit) of $830,000 and Cost of Goods Sold of $525,000. At the beginning of the year, its Accounts Receivable were $80,000 and its Inventory was $100,000. At the end of the year, its Accounts Receivable were $86,000 and its Inventory was $110,000. On average how many days of sales were in Accounts Receivable during the year? 27 37 49
For its most recent year a company had Sales(all on credit) of $830,000 and Cost of Goods Sold of $525,000. At the beginning of the year its accounts receivable were $80,000 and its inventory was $100,000. At the end of the year its accounts receivable were $86,000 and its inventory was $110,000. On average how many days of sales were in accounts receivable during the year?
For its most recent year, a company had Sales (all on credit) of $830,000 and a Cost of Goods Sold of $525,000. At the beginning of the year, its Accounts Receivable were $80,000 and its Inventory was $100,000. At the end of the year, its Accounts Receivable were $86,000 and its Inventory was $110,000. The inventory turnover ratio for the year was: a. 4.8 b. 5.0 c. 7.9
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Last year, Wilson's had credit sales of $927,000 and cost of goods sold of $762,000. The beginning of the year inventory was $138,000 and the end of the year inventory was $154,300. If the accounts receivables average $87,400, what is the operating cycle (using average inventories during the year)?
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For its most recent year a company had Sales (all on credit) of $830,000 and Cost of Goods Sold of $525,000. At the beginning of the year its Accounts Receivable were $80,000 and its Inventory was $100,000. At the end of the year its Accounts Receivable were $86,000 and its Inventory was $110,000. Calculate (i) the inventory turnover ratio for the year (ii) accounts receivable turnover ratio for the year (iii) the average days of sales were in Accounts Receivable during the year (iv) average days of sales in Inventory during the year.
The balance of Lloyd Corporation's accounts payable at the beginning of the most recent year was $53,000. At the end of the year, the accounts payable balance was $55,000. Lloyd's sales revenue for the year was $3,130,000, while its cost of goods sold for the year was $1,566,000. Calculate Lloyd's days' payable outstanding (DPO) for the year. Assume inventory levels are constant throughout the year. If the credit terms from Lloyd's suppliers are n/30, how would you interpret Lloyd's DPO? (Round the DPO to two decimal places, XXX.) KIYE Lloyd's days' payable outstanding for the year is A Lloyd is paying later than acceptable since the credit terms are n/30, which is usually characteristic of a company with great liquidity B. Since the credit terms are n/30, Lloyd is paying ahead of schedule, which is usually characteristic of a company with great liquidity C. Since the credit terms are n/30, Lloyd is paying later than acceptable, which is usually characteristic of a company with poor…