Answered: Morgan Industries currently has…

Morgan Industries currently has accounts receivable of $750,000 on net sales of $4,200,000. 1. Calculate the Accounts Receivable Turnover Ratio 2. Calculate the Days' Sales Outstanding (DSO)

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: Abc

A: Step 1: Identify the given informationRetained Earnings (Current Year) = $101,000,000Retained…

Q: A company had $5 million in sales, $3 million in cost of goods sold, and $1 million in selling and…

A: Step 1: Definition of Gross Profit Margin PercentageGross Profit Margin Percentage is a financial…

Q: Disbursements for manufacturing overhead on the manufacturing overhead

A: Explanation of Cash Disbursement for Manufacturing Overhead:Cash disbursement for manufacturing…

Q: Need answer

A: Explanation of High-Low Method: The high-low method is a cost estimation technique that uses the…

Q: Determine the depreciation for the month

A: Explanation of Units-of-Production Depreciation Method: This is a depreciation method that allocates…

Q: abc general accounting is

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) refers to the total cost of…

Q: financial accounting

A: Step 1: Definition of PayrollPayroll refers to the process of calculating and distributing employee…

Q: How many units must be sold yield a profit of 50000?

A: Explanation of Contribution Margin:Contribution margin represents the amount remaining from sales…

Q: What is the company's plantwide overhead rate?

A: The plantwide overhead rate is calculated using the formula: Overhead Rate=Total Estimated Machine…

Q: Correct ans please for this general account questions

A: Step 1: Definition of Gross Profit RatioThe gross profit ratio (also called gross margin percentage)…

Q: Hy expert please given answer

A: Step 1: Definition of Total CostsTotal costs consist of fixed costs (which remain constant…

Q: How many meals would have to be sold if fix costs declined by 20% ? Accounting

A: Step 1: Definition of Contribution Margin and Required Sales CalculationContribution Margin is the…

Q: During FY 2020, Dorchester Company plans to sell Widgets for $14 a unit. Current variable costs are…

A: Concept of Selling Price per UnitThe selling price per unit is the amount at which a company sells…

Q: Accurate answer

A: Step 1: Introduction to cost of a productThe cost of a product refers to the total amount of…

Q: What is the gross profit margin?

A: Explanation of Sales: Sales, also known as revenue, represents the total amount of money received…

Q: Choose best answer

A: Detailed explanation:Given:Percent of growth, 12% or 0.12Accounts Receivable, prior year $ 649,196…

Q: If one unit of Product AE3 used $2.71 of direct materials and $4.24 of direct labor, sold for $9.00,…

A: Concept of Direct Materials CostDirect materials cost refers to the expense incurred for raw…

Q: General accounting

A: Step 1: Debt Relief CalculationCosmo contributed land with a tax basis of $99,000.The land is…

Q: What is Anna's asset turnover for

A: Step 1:First, calculate the average total assets: Average total assets = (Total assets 2023 + Total…

Q: Answer please

A: Explanation of Absorption Costing:Absorption costing is a costing method in which all manufacturing…

Q: Hi expert please give me answer general accounting question

A: Step 1: Definition of Operating Cash Flow (OCF)Operating Cash Flow (OCF) represents the cash…

Q: If you want to make a 15% profit from 250 shillings, what price do you place on your goods? Answer

A: Approach to solving the question:Freeform Detailed explanation: To determine the selling price when…

Q: given answer of this Financial accounting question

A: Step 1: Define Total return measures the overall gain or loss from an investment, including both…

Q: not use ai solution given answer General accounting

A: Step 1: Define Holding Period Return (HPR) measures the percentage return on an investment over a…

Q: Financial Account Subject

A: To calculate the total standard cost of one unit of Fleck's product, we sum up the standard costs…

Q: Need answer

A: Data of Excess CapacitySelling Price = $20Units = 1,800Variable Cost = $16 Note: Fixed costs are not…

Q: No AI ANSWER

A: Concept of Gross ProfitGross Profit is the difference between a company's sales revenue and the cost…

Q: 4 POINTS

A: Explanation of Net Income:The Net Income represents the profit a company earns after subtracting all…

Q: expert of general account answer

A: Detailed explanation: Standard costs may be used by any kinds of organizations. It can be for profit…

Q: What is dant's gross profit at standard?

A: Explanation of Standard Gross Profit: Standard gross profit is the profit that a company expects to…

Q: What is the bid price for this special order?

A: Explanation of Direct Materials Cost:Direct materials cost refers to the cost of raw materials that…

Q: hello teacher please solve questions

A: Step 1: Definition of Days' Sales in Receivables (Average Collection Period)The Days' Sales in…

Q: Transitioning to a multiple department rate system for allocating overhead

A: Explanation of Plantwide Factory Overhead Rate:The plantwide factory overhead rate is a single…

Q: Need help this question solution

A: Step 1: Definition of Overapplied or Underapplied OverheadOverapplied overhead occurs when the…

Q: Compute the number of days

A: To compute the number of days' sales in accounts receivable, we use the formula:Number of Days'…

Q: hi expert please help me

A: Step 1: Introduction to accounts receivableAccounts receivable refers to the customers who have…

Q: Accurate answer

A: To determine the firm's sustainable growth rate (SGR), we use the formula: SGR =ROE × Retention…

Q: Hello teacher please solve general accounting questions

A: Step 1: Definition of Operating CycleThe period that an entity has to wait from having finished…

Q: 1. Assume there is a 7% sales tax rate in Ohio, where the customer who ordered the boots is located.…

A: No, the $7.63 sales tax is not added to L.L. Bean's sales revenue. Sales tax is collected by L.L.…

Q: Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell…

A: If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…

Q: L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in…

A: Step 1: Identify the Sales Price of One Pair of BootsWe don't have an exact selling price, but L.L.…

Q: Fairfield Company's payroll costs for the most recent month are summarized here: Item Hourly labor…

A: Step 1:1. First, calculate the payroll cost related to the factory: Factory payroll cost = Factory…

Q: General Accounting

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

Q: Accountants use only a) variable. b) implicit. c) opportunity. d) explicit. costs in their…

A: Step 1: Definition of Explicit CostsExplicit costs are actual, recorded expenses that a business…

Q: Financial Accounting

A: Earnings per Share (EPS) = $2.10 Stock Price = EPS × P/E Ratio1. If the P/E ratio is 21:Stock Price…

Q: Give this question general accounting

A: Step 1: Definition of Stockholders' EquityStockholders' equity, also known as shareholders' equity,…

Q: None

A: 1. Understand the DuPont EquationThe DuPont equation breaks down Return on Equity (ROE) into three…

Q: What is the contribution margin ratio of this financial accounting question?

A: Step 1:First calculate the contribution margin: Contribution margin = Sales - Variable costs…

Q: What is the return on equity on these financial accounting question?

A: Return on Equity (ROE) is calculated as: ROE=Owner's EquityNet IncomeWe can use the **ROA…

Q: What is the total manufacturing cost per unit under the abc system on these general accounting…

A: Step 1: Define Total Manufacturing Cost Under ABC SystemActivity-Based Costing (ABC) is a costing…

Question

I want to correct answer general accounting question

Morgan Industries currently has accounts receivable of $750,000 on net sales
of $4,200,000.
1. Calculate the Accounts Receivable Turnover Ratio
2. Calculate the Days' Sales Outstanding (DSO)

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.
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.
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.
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?
The following select financial statement information from Vortex Computing. Compute the accounts receivable turnover ratios and the number of days sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Vortex Computing if industry average for accounts receivable turnover ratio is 4 times and days sales in receivables ratio is 85 days?
The following select financial statement information from Candid Photography. Compute the accounts receivable turnover ratios and the number of days sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Candid Photography if industry average for accounts receivable turnover ratio is 3 times and days sales in receivables ratio is 150 days?
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.
FINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8B. All sales are credit sales. The Accounts Receivable balance on January 1 was 38,200. REQUIRED Prepare the following financial ratios: (a)Working capital (b)Current ratio (c)Quick ratio (d)Return on owners equity (e)Accounts receivable turnover and the average number of days required to collect receivables (f)Inventory turnover and the average number of days required to sell inventory
Ratio Analysis The following information was taken from Nash Inc.s trial balances as of December 31, 2018, and December 31, 2019. Required: 1. Calculate the net profit margin and accounts receivable turnover for 2019. ( Note: Round answers to two decimal places.) 2. How much does Nash make on each sales dollar? 3. How many days does the average receivable take to be paid (assuming all sales are on account)?
FINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8A. All sales are credit sales. The Accounts Receivable balance on January 1,20--, was 3,800. REQUIRED Prepare the following financial ratios: (a) Working capital (b) Current ratio (c) Quick ratio (d) Return on owners equity (e) Accounts receivable turnover and average number of days required to collect receivables (f) Inventory turnover and average number of days required to sell inventory
FINANCIAL RATIOS Based on the financial statements foe Jackson Enterprises (income statement, statement of owners equity, and balance sheet) shown on pages 598599, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was 21,600. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventory
FINANCIAL RATIOS Based on the financial statements, shown on pages 605606, for McDonald Carpeting Co. (income statement, statement of owners equity, and balance sheet), prepare the following financial ratios. All sales are credit sales. The balance of Accounts Receivable on January 1, 20--, was 6,800. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and the average number of days required to collect receivables 6. Inventory turnover and the average number of days required to sell inventory