Michaels Corp. has a current accounts receivable balance of $623,410. Credit sales for the year just ended were $5,410,695. What is the receivables turnover? The days’ sales in receivables? How long did it take on average for credit customers to pay off their accounts during the past year?

Michaels Corp. has a current accounts receivable balance of $623,410. Credit sales for the year just ended were $5,410,695. What is the receivables turnover? The days’ sales in receivables? How long did it take on average for credit customers to pay off their accounts during the past year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A company reports the following: Sales $399,675 Average accounts receivable (net) 54,750 Determine…

A: Accounts receivable turnover is computed by dividing the sales with the average accounts receivable…

Q: Using the data in the preceding question, assume accounts receivable had a beginning balance of…

A: Given information is: Net credit Sales = $807,800 Beginning Account Receivables = $67,400 Ending…

Q: Pujols Lumber Yard has a current accounts receivable balance of $265,038. Credit sales for the year…

A: Days sales in receivables are to be computed by taking account receivables s numerator and credit…

Q: ABCD Corporation has credit sales of $8,460,000 and receivables of $1,260,000. Assume there are 365…

A: Ratio analysis is one of useful technique used. Under this, various calculations are done on…

Q: What is the receivables turnover?

A: Turnover means the is the amount of sales by the business. It is sometimes called as income of the…

Q: Accounts Receivable Analysis A company reports the following: Sales $562,100 Average accounts…

A: A company's accounts receivable turnover may be defined as the number of times in a given year that…

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: A company reports the following: Sales $572,320 Average accounts receivable (net) 20,440…

A: The question is related to Ratio Analysis. The Accounts Receivables Turonver Ratio is calculated…

Q: A company reports the following: Sales $630,720 Average accounts receivable (net) 52,560 Determine…

A: The measure that helps in determining the efficiency of the entity in collecting its dues from the…

Q: Bonita Corporationreported net credit sales of $3447600 for this year. The company had accounts…

A: AVERAGE COLLECTION PERIOD Account Receivable collection period measure the quality of debtors…

Q: Pujols Lumber Yard has a current accounts receivable balance of $590,150. Credit sales for the year…

A: In this question, we are required to determine the Days Sales Outstanding (DSO).

Q: ABCD Corporation has credit sales of $10,290,000 and receivables of $1,560,000. Assume there are 365…

A: In this we have to calculate the receivable turnover ratio using the formula.

Q: ccounts Receivable Analysis: A company reports the following Sales $649,700 64,970 Average accounts…

A: Ratio analysis: It is a method used to measure the liquidity, profitability, efficiency of the…

Q: Assuming 77 percent of sales are on credit, what is the company's days' sales in receivables?

A: Information Provided: Net Income = $191,000 Profit Margin = 9.10% Accounts Receivable = $106,919…

Q: The following data are taken from or calculated from the financial statements: Average accounts…

A: Introduction: The percentage of a period's average accounts receivable divided by the period's net…

Q: A company reports the following: Sales $303,680 Average accounts receivable (net) 23,360 Determine…

A: Accounts receivable turnover ratio shows how quickly company is able to collect amount from the…

Q: Based on the following data for the current year, what is the number of days' sales in receivables?…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: What is the number of days’ sales in receivables? Round to one decimal place. Group of answer…

A: Number of days' in receivables Days Sales Outstanding (DSO) represents the average number of days it…

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

A: Days Sales Outstanding (DSO) is the measure the average number of days a business to receive…

Q: Your company had net sales of $100,000 over the past year. One quarter of the sales were credit…

A: Net Sales = 100,000 One quarter were credit sales Credit Sales = Net Sales / 4 = 100,000 / 4 =…

Q: A company reports the following: Line Item Description Amount Sales $1,292,100 Average…

A: The objective of this question is to calculate the accounts receivable turnover and the days' sales…

Q: Presented below is information for Ayayai Company. 1. Beginning-of-the-year Accounts Receivable…

A: Accounts Receivable Turnover = Credit Sales / Average Receivables Beginning Accounts Receivable…

Q: ccounts Receivable Analysis A company reports the following: Sales…

A: a) Account Receivable Turnover: Calculate the accounts receivable turnover as shown below: Account…

Q: A company reports the following: Sales $1,180,410 Average accounts receivable (net) 56,210…

A: Given: Sales = $1,180,410 Average accounts receivables = $56,210

Q: A company reports the following: Line Item Description Amount Sales $5,250,000 Average…

A: The objective of the question is to calculate the accounts receivable turnover and the days' sales…

Q: Based on the following data for the current year, what is the days' sales in receivables? Assume 365…

A: DAYS SALES IN RECEIVABLEDays Sales to Receivable is a ratio between 360/365 Days and Receivable…

Q: A company reports the following: Sales $315,360 Average accounts receivable (net) 39,420 Determine…

A: Accounts receivable turnover = ( Net Credit Sales / Average Accounts receivable ) Number of days'…

Q: Sunland Clothing Store had a balance in the Accounts Receivable account of $500000 at the beginning…

A: Average Accounts receivable = (Beginning Accounts receivable + Ending Accounts receivable) / 2 =…

Q: A company has net income of $184,000, a profit margin of 8.5 percent, and an accounts receivable…

A: Profit margin=Net income/SalesHence sales=(184000/0.085)=$2164705.88

Q: The Malibu Corporation has annual credit sales of $25 million. The average collection period is 27…

A: Average collection period is the formula which is used for determining the average days will be…

Q: 4. Assume a business sold a total of $839,500 during the current year and its accounts receivable…

A: Number of days' sales in receivables is the number of days it take to collect the accounts…

Q: The financial statements of the Novak Corp. report net sales of $300000 and accounts receivable of…

A: The answer is as fallows

Q: company reports the followin Sales $890,600 Average accounts receivable (net) 44,530 Determine (a)…

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: ABC's sales for this year were $32,250,000 and the Accounts Receivable Turnover Ratio was 15.5. Next…

A: Given, ABC's sales for this year were $32,250,000 & Accounts Receivable Turnover Ratio was…

Q: A company reports the following: Sales $838,040 Average accounts receivable (net) 51,100 Round your…

A: Formula: Accounts receivable turnover ratio = Net sales / Average accounts receivable Average…

Q: Q6. Pujols Lumber Yard has a current accounts receivable balance of $394,539. Credit sales for the…

A: First, find the receivable turnover ratio ( RTOR) = Credit Sales / Accounts receivable Given credit…

Q: A company reports the following: Line Item Description Amount Sales $235,060 Average accounts…

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

Q: Trout Lumber Yard has a current accounts receivable balance of $440,516. Credit sales for the year…

A: Receivables turnover = Credit sales / Receivables Days' sales in receivables = 365 days /…

Q: A company reports the following: Sales $1,460,000 Average accounts receivable (net) 100,000…

A: a. Accounts receivable turnover = Net sales / average accounts receivable Accounts receivable…

Q: The Carhart Corporation sells on credit terms of net 25. Its accounts are, on average, 8 days past…

A: The amount of money that is owed to a company by its customers for products or services that have…

Q: ABCD Corporation has credit sales of $12,690,000 and receivables of $1,970,000. Assume there are 365…

A: Question is based on the concept of Financial ratios

Q: A company reports the following: Line Item Description Amount Sales $1,069,085 Average…

A: The objective of this question is to calculate the accounts receivable turnover and the days' sales…

Q: Twist Corp. has a current accounts receivable balance of $438,726. Credit sales for the year just…

A: Net Credit Sales = $3,830,500Accounts Receivable = $438,726

Question

100%

6. Michaels Corp. has a current accounts receivable balance of $623,410. Credit sales for the year just
ended were $5,410,695. What is the receivables turnover? The days’ sales in receivables? How long did
it take on average for credit customers to pay off their accounts during the past year?

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The financial statements of the Sunland Company report net sales of $384000 and accounts receivable of $50400 and $33600 at the beginning of the year and the end of the year, respectively. What is the average collection period for accounts receivable in days?
A company has net income of $196,000, a profit margin of 10.00 percent, and an accounts receivable balance of $106,420. Assuming 79 percent of sales are on credit, what is the company's days' sales in receivables?
The balance in Accounts Receivable at the beginning of the year was $520,000. The balance in Accounts Receivable at the end of the year was $780,000. Customer accounts of $420,000 were written off. The company collected $4,060,000 from credit customers and $1,010,000 from cash customers. What are credit sales for the year? A) $4,740,000 B) $4,480,000 C) $4,060,000 D) $4,220,000
Accounts receivable turnover and days' sales in receivablesFor two recent years, Robinhood Company reported the following: a. Determine the accounts receivable turnover for 2049 and 20Y8. Roundanswers to one decimal place.b. Determine the days' sales in receivables for 2049 and 20Y8. Use 365days and round all calculations to one decimal place.c. Are the changes in the accounts receivable turnover and days' sales inreceivables from 20Y8 to 2049 favorable or unfavorable?
A recent annual report for FedEx contained the following data: Numerator Denominator Numerator Denominator (dollars in thousands) Accounts receivable Less: Allowances Net accounts receivable Net sales (assume all on credit) Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year. Note: Use 365 days a year. Enter your answers in thousands not in dollars. Current Year $ 9,416,000 293,000 $9,123,000 $ 69,703,000 Receivables Turnover Ratio Net sales Average net trade accounts receivable Receivables turnover Average Days Sales in Receivables 365 Previous Year $ 88,452,000 397,000 $ 88,055,000 365 1.43 0 times 255.24 days
Camden Hardware’s credit sales for the year were $320,000. Accounts receivable at the beginning and end of the year were $50,000 and $70,000, respectively. Calculate the accounts receivable turnover ratio and the average collection period for the year.
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
A company reports the following: Sales $1,332,250 Average accounts receivable (net) 53,290 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover fill in the blank 1 b. Number of days' sales in receivables fill in the blank 2 days
A company reports the following: Sales $1,057,770 Average accounts receivable (net) 83,950 Determine the (a) accounts receivable turnover, and (b) number of days' sales in receivables. When required, round your answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables days
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $360,000: allowance for uncollectible accounts at the beginning, $30,000, credit sales during the year, $1,800,000; accounts receivable written off during the year $19,200; cash collections from customers; $1,740,000. the company estimates that the required year-end balance in the allowance for uncollectible accounts should be $40,080. What is the year-end gross and net accounts receivable balance?
Dahlia Corporation has a current accounts receivable balance of $329,800. Credit sales for the year just ended were $4,369,850. a. What is the company's receivables turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the company's days' sales in receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How long did it take on average for credit customers to pay off their accounts during the past year? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Receivables turnover b. Days' sales in receivables c. Average collection period times days days
Wildhorse Co. had net credit sales during the year of $1223200 and cost of goods sold of $712000. The balance in accounts receivable at the beginning of the year was $121200 and at the end of the year was $156800. What was the accounts receivable turnover? 10.8 7.5 5.6 8.8