Kant Inc. has a net income of $320,000, a profit margin of 8.5%, and an accounts receivable balance of $195,000. Assuming 80% of sales are on credit, what are the company's days' sales in receivables? (Round your answer to whole number if needed) A. 20 days B. 22 days C. 28 days D. 24 days

Kant Inc. has a net income of $320,000, a profit margin of 8.5%, and an accounts receivable balance of $195,000. Assuming 80% of sales are on credit, what are the company's days' sales in receivables? (Round your answer to whole number if needed) A. 20 days B. 22 days C. 28 days D. 24 days

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 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

See similar textbooks

Related questions

Q: Solve this question and accounting

A: Step 1: Detailed explanation of the Gross Profit MethodThe gross profit method is used to estimate…

Q: I am trying to find the accurate solution to this general accounting problem with appropriate…

A: Step 1: Detailed Explanation of Predetermined Overhead Rate A predetermined overhead rate is…

Q: Can you please answer the accounting question without use Ai?

A: Indirect labor overhead = $3,600,000Factory utilities overhead = $1,200,000Total overhead =…

Q: Valor Systems is considering a project that will produce incremental annual sales of $320,000 and…

A: To calculate Operating Cash Flow (OCF) using the top-down approach, you use the formula:OCF = Sales…

Q: Help me tutor

A: Let's go through each question one at a time.1. Increase in Plan Assets (Berry Inc.)Formula:Increase…

Q: I need help with this solution and accounting question

A: Step 1: Detailed Explanation of Pension Income TaxabilityPension income is taxable, but part of it…

Q: Please provide the answer to this general accounting question with proper steps.

A: Step 1: Definition of Finance Charge A finance charge refers to the total monetary cost incurred by…

Q: SUBJECT: FINANCIAL ACCOUNTING

A: Explanation of Cost Basis: Cost basis represents the original value of an asset for tax purposes,…

Q: None

A: To calculate the approximate real rate of return, we use the Fisher approximation formula:Real…

Q: Please given correct answer for General accounting question I need step by step explanation

A: Step 1: Detailed Explanation of Activity-Based Costing (ABC)Activity-Based Costing (ABC): ABC…

Q: subject general accounting

A: Step 1: Definition of Net SalesNet Sales is a financial metric that represents the actual revenue a…

Q: Please explain this financial accounting problem by applying valid financial principles.

A: Step 1: Calculate the annual interest amount. Annual interest = Face value × Annual coupon rate…

Q: Can you solve this accounting problem with appropriate steps and explanations?

A: Q2: Net Sales CalculationNet Sales = Sales - Sales Returns and Allowances= $90,000 - $1,500=…

Q: What was the amount of collection from customers?

A: Explanation of Accounts Receivable :Accounts receivable represents money owed to a company by its…

Q: Solutions for the Question

A: Here are the solutions to all four problems:1. Berry Inc. - Increase in Plan AssetsWe calculate the…

Q: Resented below is financial information for two different companies.

A: Concept of Sales:Sales refer to the total revenue generated from selling goods or services before…

Q: What is the total applied overhead for the year? Accounting question

A: Step 1: Definition of Applied OverheadApplied Overhead is the amount of manufacturing overhead…

Q: Can you solve this general accounting problem with appropriate steps and explanations?

A: Step 1: Detailed Explanation of Profit Margin Calculation The profit margin can be derived from the…

Q: Can you provide the accurate answer to this financial accounting question using correct methods?

A: Step 1: Definitions Concept of Depreciation:Depreciation is the systematic allocation of the cost of…

Q: See an attachment for details General accounting question not need ai solution

A: Step 1: Detailed Explanation of Contribution Margin and Net Operating IncomeThe contribution margin…

Q: Ferrari Industries is preparing its cash budget for the month of August. The company estimated…

A: Meaning of Cash Receipts from Accounts Receivable:Cash receipts from accounts receivable refer to…

Q: I need help with this problem and accounting

A: Step 1: Detailed explanation of Debt-Equity RatioThe debt-equity ratio is a financial ratio that…

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: Step 1: Detailed Explanation of Overapplied or Underapplied Overhead To calculate whether the…

Q: Please explain the accurate process for solving this financial accounting question with proper…

A: Step 1: DefinitionsConcept of Current Ratio:The current ratio is a financial metric that indicates a…

Q: Need answer general accounting question

A: Step 1: Detailed Explanation of Break-even Sales Calculation The break-even point represents the…

Q: A company purchases Depreciable equipment for $25 and sells it a few years later for $180.

A: Concept of Book ValueBook value is the net value of an asset recorded on a company's balance sheet…

Q: I need help with this general accounting question using standard accounting techniques.

A: Meaning of Sales Revenue:Sales revenue refers to the income generated from a company's core business…

Q: Can you solve this general accounting problem with appropriate steps and explanations?

A: Step 1: Definition of Goodwill Goodwill is an intangible asset that represents the excess amount…

Q: Please provide the answer to this general accounting question using the right approach.

A: Step 1: Detailed Explanation of Break-Even SalesThe break-even sales amount is the point at which…

Q: Can you solve this financial accounting problem using appropriate financial principles?

A: Step 1: Detailed Explanation of Interest ExpenseInterest expense is the cost incurred by an entity…

Q: Right Answer

A: Meaning of Manufacturing Overhead:Manufacturing overhead includes all indirect production costs that…

Q: I am looking for help with this general accounting question using proper accounting standards.

A: Explanation of Net Income:Net income refers to the total profit of a company after all expenses,…

Q: General accounting

A: Step 1: Detailed Explanation of Asset Turnover RatioAsset Turnover Ratio is a financial metric that…

Q: Could you help me solve this financial accounting question using appropriate calculation technical.

A: Provided Data:Predetermined Overhead Rate:Assembly: $20.00 per direct labor hourInspection: $12.00…

Q: Burlington Systems estimated manufacturing overhead for the year at$420,000. Manufacturing overhead…

A: Provided Data:Estimated manufacturing overhead = $420,000Applied manufacturing overhead =…

Q: Mandeep Bakery believes its marketing expenditures are too high and wants to cut $450,000 from the…

A: Mandeep Bakery's proposal to reduce its marketing budget by $450,000, although appearing to provide…

Q: Please provide the solution to this general accounting question using proper accounting principles.

A: Step 1: Definition of High-Low MethodThe High-Low Method is a managerial accounting technique used…

Q: I am trying to find the accurate solution to this financial accounting problem with appropriate…

A: Step 1: Detailed Explanation of Gross MarginGross margin represents the percentage of sales revenue…

Q: Kindly help me with this General accounting questions not use chart gpt please fast given solution

A: 1: Calculate the predetermined overhead ratePredetermined Overhead Rate = Budgeted Overhead /…

Q: I am looking for help with this general accounting question using proper accounting standards.

A: To calculate net income, use the retained earnings formula:Ending Retained Earnings = Beginning…

Q: A company purchased machinery for $50,000 with a useful life of 5 years and no salvage value.What is…

A: Using the straight-line depreciation method, the formula is:Annual Depreciation = (Cost - Salvage…

Q: Could you help me solve this financial accounting question using appropriate calculation techniques?

A: Step 1: Detailed Explanation of Straight-Line DepreciationStraight-line depreciation allocates an…

Q: Quick answer of this accounting

A: Step 1: Detailed explanation of Contribution Margin RatioThe contribution margin ratio represents…

Q: General accounting

A: Step 1: Understand the starting balancesAccounts Receivable = $150,000Allowance for Doubtful…

Q: Subject : general accounting question

A: Step 2: Calculate the new stock price in 2017 using the 2016 P/E ratio.P/E ratio in 2016 = Stock…

Q: Given solution for General accounting question not use ai

A: Step 1: Detailed Explanation of MarkupMarkup is the amount added to the cost of a product to…

Q: Accounting problem

A: Step 1: Detailed explanation of Required Units for Operating IncomeTo calculate the number of units…

Q: What is the company gross profit?

A: Explanation of Net Sales:Net sales refer to the total revenue a company generates from selling goods…

Q: Please help me solve this accounting question using the right financial principles.

A: Step 1: Detailed Explanation of Contribution Margin per UnitThe contribution margin per unit is…

Q: Please solve this question General accounting and step by step explanation

A: Step 1: Detailed Explanation of Return on Equity (ROE)Return on Equity (ROE) is a measure of a…

Question

What are the company's day's sales in receivables?

Kant Inc. has a net income of $320,000, a profit
margin of 8.5%, and an accounts receivable
balance of $195,000. Assuming 80% of sales
are on credit, what are the company's days'
sales in receivables? (Round your answer to
whole number if needed)
A. 20 days B. 22 days C. 28 days D. 24 days

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Montalcino Company had net sales of 54,000,000. Montalcino had the following balances: 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.
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.
Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note: Round answers to two decimal places. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Ancient Grains Unlimited has an accounts receivable turnover ratio of 3.34 times. The net credit sales for the year are $567,920. What is the days sales in receivables ratio for 2018 (rounded to the nearest whole number)? A. 190 days B. 109 days C. 110 days D. 101 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?
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were 4,562,500 and accounts receivable averaged 437,500. Half of Grunewalds customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewalds nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.)
Kant Inc. has a net income of $320,000, a profit margin of 8.5%, and an accounts receivable balance of $195,000. Assuming 80% of sales are on credit, what are the company's days' sales in receivables? (Round your answer to whole number if needed) A. 20 days B. 22 days C. 28 days D. 24 days
Days sales in receivable?
A company has net income of $191,000, a profit margin of 9.10 percent, and an accounts receivable balance of $106,919. Assuming 77 percent of sales are on credit, what is the company's days' sales in receivables? Multiple Choice 18.59 days 33.25 days 5.55 days 25.35 days 24.15 days
A company has net income of $182,000, a profit margin of 9.90 percent, and an accounts receivable balance of $106,014. Assuming 69 percent of sales are on credit, what is the company's days' sales in receivables? Multiple Choice 21.05 days 40.40 days 30.50 days
need help this questions