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. $725,000 b. $1,625,000 c. $2,050,000 d. $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. 6.7 b. 12.5 c. 14.3 d. None of these choices are correct 3. 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 number of days’ sales in inventory for Year 2. a. 3.2 b. 57.8 c. 5.7 d. 6.3

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

Question

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. $725,000
b. $1,625,000
c. $2,050,000
d. $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. 6.7
b. 12.5
c. 14.3
d. None of these choices are correct

3. 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 number of days’ sales in inventory for Year 2.

a. 3.2
b. 57.8
c. 5.7
d. 6.3

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 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