Marga Corporation has the following historical pattern of credit sales: 70% during the month of sale 4% in the third month after sale 15% in the first month after sale 1% uncollectible  10% in the second month after sale   Required: Compute for the total cash collections during the 4th calendar quarter. A/R balance on the Balance Sheet as of Dec. 31

Q: The financial statement of Minnesota Mining and Manufacturing Company ( 3M ), report net sales of…

A: Account Receivable Turnover =  Net Credit Sales Average Account Receivable Net Credit Sales = Total…

Q: Valenzuela, Incorporated, has a cash cycle of 45.5 days, an operating cycle of 67 days, and an…

A: Operating cycle is calculated by taking the inventory turnover days and the account receivable days…

Q: Company Ajax has the following information from its financial statements in 2021. The annual sales…

A: Average days of accounts payable indicate the number of days the firm takes to repay the suppliers.…

Q: In October, Z-Mart had $475,000 in net credit sales and $75,000 in accounts receivable. Calculate…

A: The account receivables turnover ratio is calculated as net sales divided by account receivables.…

Q: A firm had credit sales of $15,750,000 last year and its days sales outstanding was 65 days.  What…

A: Given, Credit sales = $15,750,000. Days sales outstanding = 65 days.

Q: The IM Broke Co., has the following collection pattern for its accounts receivable: 40% in the month…

A: Entities often prepare for its expected collections from total sales made, where it can able to get…

Q: Accounts receivable management This table, shows that Blair Supply had an end-of-year accounts…

A: On a company's balance sheet, accounts receivable are categorized as a current asset because of its…

Q: A 33- day days sales outstanding is maintained by the Bebop Corporation. Each day, the company…

A: Days sales outstanding is one of important ratio used in business to evaluate efficiency of…

Q: A firm has $400,000 in credit sales and $100,000 in accounts receivable.Compute accounts receivable…

A:

Q: As of January 1, 2021, NUBD Co. had an accounts receivable of P500,000. The sales for January,…

A: Given that, Opening balance of accounts receivables = P500000 Sales for the month of Jan = P1200000…

Q: Double West Suppliers (DWS) reported sales for the year of $290,000, all on credit. The average…

A: Sales = $290,000 Average gross profit = 30% of sales   Beginning Ending Accounts receivable…

Q: Using the following information and a 360-day year, what is your estimate of the firm's current…

A: To estimate the firm's current receivables period, we use the information provided to calculate the…

Q: Use the following information to answer questions 1-3: January Cash Sales $40,000 Credit Sales…

A: To determine the balance on March 31, we need to calculate the total collections from January to…

Q: Thompson Wood Products has credit sales of $2,628,000 and accounts receivable of $627,800. Compute…

A: Average collection period is period required to receive cash money from the customers from initial…

Q: Fitbands’ estimated sales are: Oct.   $131,989 Nov.   195,710 Dec.   249,288 Jan   124,318 Feb.…

A: Balances in accounts receivable = (Current month sales x 35%) + (Last month sales x 10%)

Q: At the end of the fiscal year, Big Box Depot had account receivables of $1.89 billion on net sales…

A: The analysis of the line items included in the company's financial accounts is referred to as ratio…

Q: (Pro forma accounts receivable balance calculation) The accounts receivable for Pastors Brewing…

A: Accounts receivable are those customer accounts to whom business has made credit sales on account,…

Q: Manuel Company had cash sales of $86,800 (including taxes) for the month of June. Sales are subject…

A: Solution: Amount of sales without tax = $86,800 * 100 / 108.50% = $80,000 Amount of sales tax =…

Q: Camden Hardware's credit sales for the year were $445,500. Accounts receivable at the beginning and…

A: ACCOUNT RECEIVABLE TURNOVER RATIOAccount Receivable Turnover Ratio is the Ratio between Net Sales…

Q: Red Sun Company has a current accounts receivable balance of $350,000. Credit sales for the year…

A: The average collection period, also known as the day's sales outstanding (DSO), is a measure of how…

Q: Historically, Ragman Company has had no significant bad debt experience with its customers. Cash…

A: Cash sales = 20% Total sales = Cash sales + Credit sales Credit sales = 80% The calculation are…

Q: Accounts receivable management This table, , shows that Blair Supply had an end-of-year accounts…

A: It is the time taken to convert the accounts receivable into cash. The lower the ratio, the company…

Q: Jumbotron Inc. collects its receivables in 15 days and pays its payables in 20 days. All sales and…

A: The cash budget is prepared by the management to estimate the expected cash receipt and cash…

Q: The financial statements of the Sunland Company report net sales of $384000 and accounts receivable…

A: Accounts receivable turnover ratio = Net credit sales / Average Accounts Receivables where, Average…

Q: During its first year of operations, Fertig Company had credit sales of $3,000,000, of which…

A: Ratio analysis is a powerful tool used by businesses, investors, and financial analysts to evaluate…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.