Meryl Company had $540,000 in sales on account last year. The beginning accounts receivable balance was $30,000 and the ending accounts receivable balance was $54,000. What was the company's average collection period (age of receivables)?

Meryl Company had $540,000 in sales on account last year. The beginning accounts receivable balance was $30,000 and the ending accounts receivable balance was $54,000. What was the company's average collection period (age of receivables)?

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: A company's normal selling price for its product is $30 per unit. However, due to market…

A: As per given:Cost = 26 per unitNRV = 23 per unitCompare the cost and net realizable value (NRV) and…

Q: General Accounting

A: To solve the question, use the formula for the future value of an investment compounded…

Q: Answer needed in this account problem

A: Let me solve this using only the given information:1) Given facts: Corporate tax rate = 34% 2005…

Q: General Account: how do output contracts affect depreciation methods for dedicated equipment?

A: Explanation of Depreciation Methods:Depreciation methods are techniques used to allocate the cost of…

Q: Variable costing would be?

A: Step 1: Key Differences Between Variable and Absorption CostingVariable costing includes only…

Q: The output of a company mixing department solve this general accounting question

A: Step 1: Define Equivalent Units of ProductionIn process costing, each fully completed unit is…

Q: Using the following data for Marigold, Inc., compute its asset turnover and the return on assets…

A: Asset Turnover Ratio:The asset turnover ratio measures how efficiently a company uses its assets to…

Q: Provide answer please general accounting

A: Step 1: Define Indirect MethodThe indirect method can be used to prepare the statement of cash flow.…

Q: Help

A: Question 1 Option a) is correct because cross-dimensional analysis replaces single-focus review when…

Q: If you give me wrong answer I will give you unhelpful rate on these general accounting question

A: Step 1: Define Appling Manufacturing OverheadManufacturing overhead cannot be traced to the…

Q: Can you please solve this general accounting problem?

A: Step 1: Define Adjusted Cost of Goods SoldThe adjusted cost of goods sold (COGS) is calculated by…

Q: Get correct answer general accounting

A: Step 1: Define Interest EarnedThe amount of interest which is earned on a deposit or lending an…

Q: I don't need ai answer accounting questions

A: Formula:Capital Gains Yield=Selling Price−Purchase Price/Purchase Price×100 Identify ValuesPurchase…

Q: Accounting

A: Step 1: Given Value for Calculation Purchase Price per share = $53.37Dividend Per share = $9.08 Step…

Q: Financial Accounting Question please answer

A: Step 1: Define Discount BondA zero-coupon or discount bond doesn't offer interest payments on the…

Q: How to find the cost of goods sold please answer

A: Step 1: Define Cost of Goods Sold (COGS)The Cost of Goods Sold (COGS) refers to the direct costs…

Q: Please provide answer this accounting question not use chatgpt and ai

A: Step 1: Determine Total Units Purchased and Total CostJanuary 31 Purchase:Units = 100Cost per unit =…

Q: Suppose McDonald's 2025 financial statements contain the following selected data (in millions).…

A: a. Working Capital:Working Capital = Current Assets - Current Liabilities= $3,461.5 million -…

Q: Hi This Financial Account Questions Answer Want.

A: Step 1: Understand Absorption CostingUnder absorption costing, the product cost includes:Direct…

Q: Feed of General Account expert. answer asap. Don't use Ai.

A: Step 1: The Estimated cost of ending inventory under the gross profit method can be calculated by…

Q: Tutor hrlp me

A: Step 1: Understanding Variable CostingUnder variable costing, only variable production costs are…

Q: Financial accounting

A: Step 1: Define MarkupThe concept of markup, in business and economics, is the amount of money that…

Q: Financial accounting

A: Step 1: Define Fixed-Order Quantity ModelThe fixed order quantity model is a model for controlling…

Q: Question:Cost Account Freeze Frame Camera Shop uses the lower-of-cost-or-net realizable value for…

A: To determine the ending inventory using the lower-of-cost-or-net realizable value (LCNRV) basis, we…

Q: I need this question general accounting

A: Step 1: Define Sales RevenueSales revenue is the amount paid to the company by the buyers for the…

Q: Financial Accounting

A: Step 1: Define Depreciation EstimatesVarious estimates can be used to calculate a depreciation…

Q: Subject: Financial Accounting 3 PTS

A: Explanation of Risk-Pattern Mapping:Risk-pattern mapping is a process of identifying and analyzing…

Q: Don't use ai to answer I will report you answer

A: a. Average Rate of Return (ARR)The ARR is the economic measure of the profitability of an investment…

Q: Please solve these financial accounting question

A: To calculate the holding period return (HPR), we use the formula: HPR=Initial…

Q: Bella cafe has sales of $600,000 with cost solve this accounting questions

A: Step 1: Definition of Net IncomeNet income is the company's total earnings calculated by deducting…

Q: Do you please give me correct answer the general accounting question

A: Step 1: Define Units of Production MethodThe units of the production method of depreciation are used…

Q: What is the profit margin on these general accounting question?

A: Step 1: Define Profit MarginProfit Margin is a financial ratio that measures the percentage of…

Q: Hastings company has purchased a group solve this accounting questions

A: Step 1: Define AssetsAssets are classified as both financial and non-financial resources in…

Q: (Financial Account) Fiwrt Corporation manufactures and sells stainless steel coffee mugs. Expected…

A: To determine how many mugs Fiwrt Corporation should produce during November, we use the following…

Q: Financial accounting

A: Step 1: Define Capital GainsWe realize capital gains upon the sale of investments. The gains…

Q: ANSWER

A: The question requires the determination of the free cash flow. Free cash flow (FCF) represents the…

Q: I need this general accounting question solution

A: Step 1: Define Price Earning RatioThe price earning ratio also known as P/E ratio. It is the ratio…

Q: Aerospace Manufacturing recently replaced a piece of machinery at a net price of $4,000, f.o.b.…

A: The cost of the new machine is the sum of the deductible paid by Aerospace ($4,000) and the freight…

Q: Please provide correct answer general accounting question not use chart gpt

A: Step 1:As per the accounting equation, the total assets are always equal to the sum of total…

Q: Need answer the accounting question

A: The question requires the determination of the percentage return of investment.Return on Investment…

Q: General Accounting Question

A: Step 1: Define Realized GainRealized gain is the difference between the fair market value (FMV) of…

Q: Blue jay corporation plans solve this accounting questions

A: Step 1: Definition of Annual Rate of ReturnThe annual rate of return is calculated by dividing the…

Q: Ivanhoe Distribution Co. has determined its December 31, 2017 inventory on a LIFO basis at $890,000.…

A: Step 1: Understand the Lower-of-Cost-or-Market RuleUnder the LCM rule, inventory is valued at the…

Q: Watch this video "data Visualization for Data Analysis and Analytics" and then share in a one page…

A: What I Learned from "Data Visualization for Data Analysis and Analytics" Data visualization is a…

Q: Provide correct answer please

A: Step 1:First calculate the balance of accumulated depreciation on July 1, 2021: Accumulated…

Q: What is the capital gain on your share investment for these general accounting question?

A: Step 1: Definition of Capital GainThe capital gain is the profit earned from the sale or increase in…

Q: General Accounting: What role do verification hierarchies play in evidence evaluation? a) Single…

A: Explanation of Verification Hierarchies: Verification hierarchies are structured frameworks used in…

Q: Hi please solve this

A: To determine the inventory value using the lower-of-cost-or-market (LCM) method on an…

Q: Please provide correct answer the accounting question

A: Step 1: Net sales.= sales - sales discounts - sales returns and allowances= $820,000 - $12,300 -…

Q: General accounting

A: Question 1: Compute the company's degree of operating leverage• Step 1: Identify the Contribution…

Question

100%

I want to correct answer general accounting

Meryl Company had $540,000 in sales on account last
year. The beginning accounts receivable balance was
$30,000 and the ending accounts receivable balance
was $54,000.
What was the company's average collection period
(age of receivables)?

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

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.
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.
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.
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?
Berry Farms has an accounts receivable balance at the end of 2018 of $425,650. The net credit sales for the year are $924,123. The balance at the end of 2017 was $378,550. What is the number of days sales in receivables ratio for 2018 (round all answers to two decimal places)?
Fitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
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.
Accounts Receivable Balance Hart Inc. began the year with $315,700 of accounts receivable. During the year, Hart sold a considerable amount of merchandise on credit and collected $2,427,000 of its credit sales. At the end of the year, the accounts receivable balance is $16,800 lower than the beginning balance. Required: Calculate the amount of credit sales during the period.
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?
Twist Corp. has a current accounts receivable balance of $357,615. Credit sales for the year just ended were $2,936,600. a. What is the receivables turnover? b. What is the days' sales in receivables?
The financial statements of the Splish Brothers Inc. reports net sales of $360000 and accounts receivable of $48000 and $21600 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days?
The financial statements of the Novak Corp. report net sales of $300000 and accounts receivable of $55200 and $27600 at the beginning of the year and the end of the year, respectively. What is the average collection period for accounts receivable in days? (Use 365 days for calculation.)