Premier Manufacturing has inventory of $4 million and current liabilities of $3 million. Cost of sales is $12 million annually and revenue is $18 million. What would be the accounts receivable days if the current ratio is 2? Assume 365 days in a year.

Premier Manufacturing has inventory of $4 million and current liabilities of $3 million. Cost of sales is $12 million annually and revenue is $18 million. What would be the accounts receivable days if the current ratio is 2? Assume 365 days in a year.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

See similar textbooks

Related questions

Q: Accounting 25

A: Concept of Predetermined Overhead RateThe predetermined overhead rate is an estimated cost per unit…

Q: DC corporationa accounting records reflect the following inventories

A: Explanation of Raw Materials Inventory: Raw materials inventory represents the cost of basic…

Q: Need help this question

A: Step 1: Calculate the Interest Cost:Interest Cost = Beginning PBO * Discount RateInterest Cost =…

Q: If beginning and ending work in process inventories are $9,100 and $18,100, respectively, and cost…

A: Concept of Work in Process InventoryWork in Process (WIP) Inventory refers to partially completed…

Q: Can you please solve this questions?? #general account

A: Step 1: Definition of Dividend Per ShareThe dividend per share calculation involves dividing the…

Q: If beginning and ending work in process inventories are $9,100 and $18,100, respectively, and cost…

A: Hello student! The Total Manufacturing Costs incurred during the period includes the…

Q: provide correct answer general accounting

A: Step 1: Definition of Price-Earnings RatioThe Price-Earnings (P/E) Ratio is a financial metric used…

Q: Hi expert please help me

A: Step 1: Definition of Absorption CostingAbsorption costing is also known as full costing which…

Q: need help this questions

A: Step 1: Calculation of average total assetsStep 2: Calculation of return on assetsStep 3:…

Q: Financial Accounting

A: Step 1:First, calculate the total setup cost for product A: Total setup cost for product A = Number…

Q: None

A: The real rate of interest represents the trade-off between present and future consumption. It…

Q: Help

A: Step 1: Definition of Overhead AllocationOverhead is applied to products using a predetermined…

Q: Given correct answer general Accounting

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

Q: none

A: Step 1: Definition of Gross Profit MarginGross profit margin is a profitability ratio that measures…

Q: hello tutor please given correct answer general accounting

A: Step 1: Define Actual Fixed Overhead IncurredActual Fixed Overhead Incurred refers to the total…

Q: Direct materials price variance

A: Step 1: Definition of Direct Material Price VarianceDirect Material Price Variance measures the…

Q: General accounting

A: Step 1: Definition of Free Cash Flow (FCF)Free Cash Flow (FCF) is the amount of cash a company…

Q: What is the gross profit?

A: Step 1: Cost of goods sold ratio Basis: Sales, so the sales ratio is 100%Cost of goods sold ratio =…

Q: What is the overall contribution margin ratio

A: Step 1: Sales mix Total sales = Product A Sales + Product B SalesTotal sales = $8,500 + $25,000Total…

Q: provide correct answer general accounting

A: Step 1: Definition of Capital GainCapital gain refers to the increase in the value of an asset from…

Q: What is the firm's debt equity ratio accounting question

A: Step 1: Definition of Debt to Equity RatioThe Debt to Equity Ratio measures a company's financial…

Q: Please provide correct solution and accounting

A: Step 1: Define FOB DestinationUnder the free on board destination, which is a shipping term, the…

Q: What is the firm's debt equity ratio

A: The question requires the determination of the debt-equity ratio. The debt-to-equity (D/E) ratio is…

Q: need this general accounting subjects solutions

A: Step 1: Definition of High-Low MethodThe High-Low Method is a technique used in cost accounting to…

Q: Calculate the beginning cash balance

A: Step 1: Define Beginning Cash BalanceBeginning cash balance refers to the amount of cash available…

Q: correct answer please

A: Method-1 The units-of-activity method calculates depreciation expense based on actual usage, such as…

Q: Answer this question general accounting

A: Step 1: Definition of Contra AccountsContra accounts reduce the balance of a related account. In…

Q: Accounting question

A: Step 1: Define Average Accounts Receivable BalanceAverage Accounts Receivable Balance represents the…

Q: Explanation general Accounting

A: Step 1: Define Cash WithdrawalsCash withdrawals represent the amount taken out by the owner from the…

Q: Calculate to each opereting department

A: Step 1: Definition of Administrative CostsAdministrative costs are expenses incurred to manage and…

Q: Given answer general Accounting

A: Step 1: Define Markup on Selling Price and Markup on Cost PercentageGross Profit Margin (GPM%), also…

Q: General Accounting problem

A: Concept of Book Value of EquityBook value of equity represents the net value of a company's assets…

Q: Tanishk Manufacturing has gross sales of $45,000 for the year. Its cost for the goods sold is…

A: Explanation of Total Gross Income:Total Gross Income represents the total earnings of a business…

Q: Provide correct Answer

A: Concept of Activity-Based Costing (ABC)Activity-Based Costing (ABC) is a cost allocation method that…

Q: What is its ROE? Provide answer general accounting

A: Equity multiplier =Total assets / Equity = 2.2Profit margin = Net profit…

Q: Department A had 15,000 units in work in process that were 60% completed as to labor and overhead at…

A: Detailed explanation:Given: Beginning Work In Process,15,000 units, 60% complete as to labor and…

Q: can you please solve this answer

A: Image.Explanation.The Price-Earnings (P/E) Ratio is a key financial metric used to evaluate a…

Q: The company's price earnings ratio is equal accounting

A: Step 1: Definition of Price-Earnings RatioThe Price-Earnings (P/E) Ratio measures a company's…

Q: None

A: Step 1: Definition of Break-even AnalysisBreak-even analysis is a financial calculation used to…

Q: General accounting

A: Step 1: Analysis of information givenPrincipal value of note = $4,000Interest rate = 6% or 0.06 (in…

Q: Please given answer

A: Step 1: Definition of Equivalent Units for Conversion CostsEquivalent units represent the work done…

Q: Hyundai Company had beginning raw materials inventory of $29,000. During the period, the company…

A: Concept of Raw Materials InventoryRaw materials inventory refers to the stock of materials that a…

Q: What is the break even point in sales provide answer

A: The question requires the determination of the break even point in sales. Break-even point in sales…

Q: Don't use ai given answer accounting questions

A: The problem calls for calculating the debt-equity ratio. The debt-to-equity (D/E) ratio is used to…

Q: Option? General Accounting

A: Step 1: Define Gross Profit PercentageThe Gross Profit Percentage measures the proportion of revenue…

Q: The amount and nature of the gain/loss from the sale

A: Step 1: Determine the Adjusted Basis (Book Value)Step 2: Determine the Sale PriceStep 3: Calculate…

Q: A company uses the conventional retail inventory method to account for inventory. The following…

A: To determine the cost of goods sold (COGS) using the conventional retail inventory method, follow…

Q: Need This general account questions answer

A: Step 1: Definitions of Current RatioThe current ratio is the ratio of current assets relative to…

Q: The number of units it would need to manufactured during May?

A: Explanation of Raw Materials: Raw materials represent the basic components or materials that a…

Q: Need help

A: Concept of Sales Price VarianceSales price variance measures the difference between the actual…

Question

100%

Hello tutor please provide correct answer general Accounting

Premier Manufacturing has inventory of $4 million and current
liabilities of $3 million. Cost of sales is $12 million annually and
revenue is $18 million. What would be the accounts receivable
days if the current ratio is 2? Assume 365 days in 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 by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

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?
What is the DSO?
Baxley Brothers has a DSO of 20 days, and its annual sales are $10,585,000. What is its accounts receivable balance? Assume that it uses a 365-day year. Round your answer to the nearest dollar
Medwig Corporation has a DSO of 21 days. The company averages $9,250 in sales each day (all customers take credit). What is the company's average accounts receivable? Assume a 365-day year. Round your answer to the nearest dollar. $
Suppose that Dunn Industries has annual sales of $4.07 million, cost of goods sold of $1,720,000, average inventories of $1,075,000, and average accounts receivable of $744,000. Assume that all of Dunn's sales are on credit. What will be the firm's operating cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Greene Sisters has a DSO of 20 days. The company’s average daily salesare $20,000. What is the level of its accounts receivable? Assume there are365 days in a year.
Please answer fast
A firm has sales of $1.4 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $205,000. What is the average collection period? (Use a 360-day year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Average collection period days Prev 5 of 10 94 Next >
Baxley Brothers has a DSO of 23 days, and its annual salesare $3,650,000. What is its accounts receivable balance? Assume that it uses a 365-day year.
Suppose that Dunn Industries has annual sales of $2.3 million, cost of goods sold of $1,650,000, average inventories of $1,116,000, and average accounts receivable of $750,000. Assume that all of Dunn’s sales are on credit.What will be the firm’s operating cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A firm has sales of $1.4 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $205,000. What is the average collection period? (Use 365 days in a year. Do not round intermediate calculation. Round the final answer to the 1 decimal place.) Average collection period days 76thjbnn
Using the following information and a 360-day year, what is your estimate of the firm's current receivables period? Current inventory = $170,000. Annual sales = $700,000. Accounts receivable = $75,000. Accounts payable = $16,500. Total annual purchases = $220,000. Purchases credit terms: net 30 days. Receivables credit terms: net 50 days. " Group of answer choices 39 days 29 days 35 days 45 days