Patton Corporation had the following items on its financial statements for two recent years: Line Item Description Year 2 Year 1 Sales $2,500,000 $2,000,000 Cost of merchandise sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Merchandise inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s accounts receivable turnover for Year 2.
Q: The following company information is available: Average accounts receivable $800,000 Average…
A: The objective of the question is to calculate the company's inventory turnover ratio. The inventory…
Q: Income Statement For the Year Ended April 30, 2020 $7,700,000 Sales revenue Cost of goods sold…
A: Cashflow statement prepared using the indirect method adjust net income to calculate the cashflow…
Q: The income statement of Stellar Company is shown below. Sales revenue $6,630,000 Cost of goods…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: Income statement data for Winthrop Company for two recent years ended December 31 are as follows:…
A: Comparative income statement is prepared is to find any increase / decrease in the revenue or…
Q: Income statement data for Winthrop Company for two recent years ended December 31 are as follows:…
A: Income Statement : It is a part of financial statement of a company in which revenue and expenses…
Q: Northern Lights Company's cost of goods sold for the calendar year 20-B amounted to $540,000. The…
A: Formula: Amount of cash paid for merchandise = Cost of Goods sold + Increase in Merchandise…
Q: InThe income statement of Pina Company is shown below. PINA COMPANY INCOME STATEMENT FOR THE YEAR…
A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…
Q: Nabo Corporation reports the following balances: As of 12/31/23 40,000 80,000 60,000 20,000 Accounts…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
Q: The following data were extracted from the income statement of Keever Inc.: Current Year Previous…
A: Average Inventory = ( Opening Inventory + Closing Inventory ) / 2 For Current Year = (…
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: at cost $70,000 for $118,000. 15 Collected a $30,000 account receivable. 17 Paid a $32,000 account…
A: The schedule is calculated as,
Q: [The following information applies to the questions displayed below.) Simon Company's year-end…
A: Inventory Turnover Ratio: It shows how effectively inventory is managed by comparing the cost of…
Q: The income statement and selected balance sheet information for Direct Products Company for the year…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: come statement data for Winthrop Company for two recent years ended December 31 are as follows:…
A: Answer: Current year Previous Year Increase/ Decrease Increase/ Decrease % Sales $…
Q: Harbinger Corporation reports the following balances: As of 12/31/19 As of 12/31/20 Accounts…
A: Sales: Sales include a number of goods and services sold by the organization during their accounting…
Q: Consider the following financial statement information for the Newk Corporation: Item Beginning…
A: Inventory=$12435 and $15615Account receivable=$6120 and $6287Cost of good sold=$79218Credit…
Q: Refer to the following selected financial information from Texas Electronics. Compute the company’s…
A: The days' sales in inventory is a measure of the average number of days that a company holds its…
Q: Consider the following financial statement information for the Emma Corpo Item Inventory Accounts…
A: Company needs to maintain a proper amount of working capital for that company needs to calculate the…
Q: Balance Sheet Data Income Statement Data Cash $900,000 Accounts payable $1,080,000 Sales $18,000,000…
A: Equity multiplier is increased when debt component is increased in the capital structure and equity…
Q: Compute the following ratios: Note: Use a 360-day year. Do not round intermediate calculations.…
A: Current ratio = Current assets/Current liabilities = (Cash+Accounts receivable+Inventory)/(Accounts…
Q: Patton Corporation had the following items on its financial statements for two recent years: Line…
A: Account Receivable Turnover: The account receivable turnover ratio is an efficiency measure that…
Q: ndise saseu: The cost of merchandise sold for Patterson Corporation for a rec current account…
A: A cash payment is a bill or currency paid by the recipient of goods or services to the supplier.…
Q: The income statement of Sunland Company is shown below. SUNLAND COMPANY INCOME STATEMENT FOR THE…
A: Calculation of change in inventory : Particulars Amount Beginning inventory $1,850,000…
Q: At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $…
A: Inventory turnover is basically the ratio which helps to determine how many times a company have…
Q: The following figures appear on LaGrange’s financial statements for the most recent fiscal year:…
A: Lets understand the basics. Days payable outstanding is a also known as age of account payable. It…
Q: Income statement data for Winthrop Company for two recent years ended December 31, are as follows:…
A: A comparative statement is used to compare the financial statements of two or more periods. It is…
Q: Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two…
A: Change in Amount = Particular amount of current year - Particular amount of previous year Change in…
Q: Calculate the four risk ratios listed above for Adrian Express in 2021. (Use 365 days in a year.…
A: The calculation of average collection period, average days in inventory, current ratio and debt to…
Q: credit. Assets Cash Accounts receivable Inventory Plant and equipment Total assets REVOLUTION…
A: A ratio is a mathematical relationship between two variables. The investor can evaluate the…
Q: The income statement of Bridgeport Corp. is presented here. Bridgeport Corp. Income Statement For…
A: Net cash flows From Operating activities =$ 2,022,800 Refer step 2 for Partial Cash flow statement…
Q: Cost of merchandise sold reported on the income statement was $403,600. The accounts payable balance…
A: Total Purchase of inventory = Cost of merchandise sold + Increase in inventory = $403,600 + $62,700…
Q: Cost of merchandise sold reported on the income statement was $263000. The accounts payable balance…
A: The value of products sold by a jobber or merchant is noted because the cost of merchandise sold .…
Q: Calculate the accounts receivable period, accounts payable period, inventory period, and cash…
A: Cash Conversion Cycle: It represents the time it takes for a business to transform its investments…
Q: The vertical analysis indicates that the cost of merchandise sold as a percent of sales arcent of…
A: a. Statement of Comparative Income Statement Current Year Amount Percent Previous Year Amount…
Q: Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago…
A: Current ratio =Current assets / Current liability
Q: Given the following information for Blue Bell Company for last year: Net sales (all on account)…
A: Debt to Asset ratio = Total debt / Total assets Given Total assets = $2,400,000 Assets = Debt +…
Q: Patton Corporation had the following items on its financial statements for two recent years: Line…
A: Days sales in inventory indicate the days used to sell out the business's stock. It can be…
Q: The accounting records of Uniontown Industries, Inc., provided the data below for the year ended…
A: Uniontown Industries Inc. Cash Flow Statement [Partial]--Direct Method For the Year Ended…
Q: Following is an incomplete current-year income statement. Determine Net Sales, Cost of goods sold…
A: Computation of the Net sales, cost of goods sold and Net Income are as follows :
Q: The income statement of Cheyenne Company is shown below. CHEYENNE COMPANYINCOME STATEMENTFOR…
A: The cash flows from operating activities include all the items for inflow/(outflow) of cash which…
Q: The following figures appear on LaGrange’s financial statements for the most recent fiscal year:…
A: The phrase accounts payable turnover ratio refers to the liquidity ratio that gauges how quickly a…
Q: For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2.…
A: Return on equity (ROE) refers to a ratio which shows the relationship between net income and…
Q: Selected data from the financial statements of Rags to Riches are provided below: Current Year…
A: Vertical analysis means the analysis which is done with the figures of one financial year. For…
Patton Corporation had the following items on its financial statements for two recent years:
| Line Item Description | Year 2 | Year 1 |
|---|---|---|
| Sales | $2,500,000 | $2,000,000 |
| Cost of merchandise sold | 1,975,000 | 1,600,000 |
| Cash | 500,000 | 475,000 |
| Temporary investments | 150,000 | 150,000 |
| 200,000 | 175,000 | |
| Merchandise inventory | 325,000 | 300,000 |
| Accounts payable | 450,000 | 400,000 |
Based on these data, calculate Patton Corporation’s accounts receivable turnover for Year 2.
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Patton Corporation had the following items on its financial statements for two recent years: Line Item Description Year 2 Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s working capital for Year 2.a. $725,000b. $1,625,000c. $2,050,000d. $650,000 2. Patton Corporation had the following items on its financial statements for two recent years: Line Item Description Year 2 Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s accounts receivable turnover for Year 2.a.…The 2021 Income statement of Adrian Express reports sales of $16,932,000, cost of goods sold of $10,363,500, and net income of $1,630,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: $ 630,000 $ 790,000 Cash Accounts receivable Inventory 1,460,000 1,860,000 4,830,000 $8,780,000 $7,520,000 1,030,000 1,430,000 4, 270,000 Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities $1,990,000 $1,690,000 2,330,000 1,970,000 2,490,000 2,430,000 1,970, 000 1,430,000 Common stock Retained earnings Total liabilities and stockholders' equity $8,780,000 $7,520,000 Industry averages for the following four risk ratios are as follows: Average collection period Average days in inventory Current ratio Debt to equity ratio 25 days 60 days 2 to 1 50% Requlred: 1. Calculate the four risk ratios listed above for Adrian Express in 2021. (Use 365 days…The income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: Sales $570,960 Cost of merchandise sold 324,190 Gross profit $246,770 Operating expenses: Depreciation expense $43,810 Other operating expenses 115,830 Total operating expenses 159,640 Income before income tax S87,130 Income tax expense 24,180 Net income $62,950 Changes in the balances of selected accounts from the beginning to the end of the current year are as follows: Increase Decrease Accounts receivable (net) S(12,650) Inventories 4,410 Prepaid expenses (4,220) Accounts payable (merchandise creditors) (9,000) Accrued expenses payable (operating expenses) 1,260 Income tax payable (3,020) a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Booker T Industries Inc. Cash Flows from Operating Activities…
- The financial statements of New World, Incorporated, provide the following information for the current year: December 31 January 1 Accounts receivable $ 288,000 $ 391,500 Inventory $ 281,250 $ 267,000 Prepaid expenses $ 73,200 $ 70,500 Accounts payable (for merchandise) $ 259,800 $ 251,550 Accrued expenses payable $ 66,150 $ 79,950 Net sales $ 3,172,500 Cost of goods sold $ 1,672,500 Operating expenses (including depreciation of $64,000) $ 382,500 What is New World's net cash flow from operating activities for the current year?The income statement for Rhino Company for the current year ended June 30 is as follows: 1 Sales $444,100.00 2 Cost of merchandise sold 155,600.00 3 Gross profit $288,500.00 4 Operating expenses: 5 Depreciation expense $37,510.00 6 Other operating expenses 114,580.00 7 Total operating expenses 152,090.00 8 Income before income tax $136,410.00 9 Income tax expense 40,010.00 10 Net income $96,400.00 The balances of selected accounts at the beginning and the end of the current year are as follows: End Beginning of Year of Year Accounts receivable (net) $37,180 $31,240 Inventories 91,040 79,880 Prepaid expenses 14,990 15,950 Accounts payable (merchandise creditors) 68,570 63,000 Accrued expenses payable (operating expenses) 19,010 20,840 Income tax payable 3,470 3,470 Prepare the Cash Flows from Operating…Window World Company's income statement for the year ending December 31, 2024 included the following items: Interest revenue $65,500 Salaries expense 85,000 Cost of goods sold 217,600 The following balances have been excerpted from the company's comparative balance sheets: 31-Dec-24 31-Dec-23 Interest receivable $9,100 $7,500 Salaries payable 8,900 4,200 Accounts payable 12,700 10,900 Inventory 36,100 32,500 The amount of cash paid by the company to suppliers in 2024 was Select one: $215,800. $212,200. $219,400. $248,290.
- Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Sales Cost of goods sold Gross profit $ 10,000 8,400 CABOT CORPORATION Income Statement For Current Year Ended December 31 Operating expenses Interest expense Income before taxes Income tax expense Net income 33,700 32,150 2,650 153,300 $ 240, 200 $448,600 297,250 151,350 98,600 4,100 48,650 19,598 $ 29,052 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable. Long-term note payable, secured by mortgage on plant assets Common stock Retained earnings Total liabilities and equity $ 17,500 3,200 3,300…The income statement for Rhino Company for the current year ended June 30 is as follows: 1 Sales $450,000.00 2 Cost of merchandise sold 151,700.00 3 Gross profit $298,300.00 4 Operating expenses: 5 Depreciation expense $37,780.00 6 Other operating expenses 115,450.00 7 Total operating expenses 153,230.00 8 Income before income tax $145,070.00 9 Income tax expense 39,310.00 10 Net income $105,760.00 The balances of selected accounts at the beginning and the end of the current year are as follows: End Beginning of Year of Year Accounts receivable (net) $36,230 $31,850 Inventories 93,760 81,240 Prepaid expenses 14,670 15,660 Accounts payable (merchandise creditors) 67,950 63,470 Accrued expenses payable (operating expenses) 19,130 20,560 Income tax payable 4,390 4,390 Prepare the Cash Flows from Operating…Assume a merchandising company had credit sales of $380,000, cost of goods sold of $187,000, and net income of $60,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 39,000 $ 44,000 Income taxes payable $ 13,000 $ 10,000 If the company purchases its merchandise inventory on account, then based solely on the information provided, the company’s cash paid for inventory purchases would be: Garrison 17e Rechecks 2020-10-02 Multiple Choice $189,000. $185,000. $195,000. $179,000.
- The income statement of Sunland Company is shown below. SUNLAND COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,630,000 Cost of goods sold Beginning inventory $1,840,000 Purchases 4,520,000 Goods available for sale 6,360,000 Ending inventory 1,530,000 Cost of goods sold 4,830,000 Gross profit 1,800,000 Operating expenses Selling expenses 450,000 Administrative expenses 660,000 1,110,000 Net income $690,000 Additional information: 1. Accounts receivable decreased $290,000 during the year. 2. Prepaid expenses increased $180,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $60,000.…Financial Ratios The financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) are shown. Jackson EnterprisesIncome StatementFor Year Ended December 31, 20-- Revenue from sales: Sales $170,000 Less: Sales returns and allowances 10,000 Net sales $160,000 Cost of goods sold: Merchandise inventory, January 1, 20-- $7,700 Estimated returns inventory, January 1, 20-- 1,300 $9,000 Purchases $92,900 Less: Purchases returns and allowances $1,862 Purchases discounts 1,828 3,690 Net purchases $89,210 Add: Freight-in 961 Cost of goods purchased 90,171 Goods available for sale $99,171 Less: Merchandise inventory, Dec. 31, 20-- $8,300 Estimated returns inventory, Dec. 31, 20-- 1,200 9,500 Cost of goods sold 89,671 Gross profit…Belt Company had net sales of $2,225,500,000 and cost of goods sold of $1,479,957,500. Belt had the following balances: January 1 December 31 Inventories $335,000,000 $350,000,000 Assume 365 days per year. a) Calculate the average inventory. b) Calculate the inventory turnover ratio. (Round to two decimal places.) c) Calculate the inventory turnover in days. (Round to two decimal places.)
