Still on problem 2, estimate the number of days in inventory for 2020.a. 50 daysb. 60 daysc. 70 daysd. none of the above PROBLEM 2:The following selected data taken from the financial statements of Citizens, Inc. for the yearindicated, amounts, all in Philippine peso:202042,50050,000140,000750,00080,000420,000125,00020192021Accounts receivable, net40,00040,000120,000700,00045,00045,000130,000725,00050,000InventoryCurrent assetsTotal assets, netCurrent liabilities70,000400,000120,000Cash salesCredit sales (or sales sold on credit)Cost of goods soldNote: Use 360 days for 1 year.450,000131,250345,000310,000324,000

Computation of Average inventory for 2020 is as follows: Average inventory =Opening…

PROBLEM 2: The following selected data taken from the financial statements of Citizens, Inc. for the year indicated, amounts, all in Philippine peso: 2019 2020 2021 Accounts receivable, net 40,000 40,000 120,000 42,500 50,000 45,000 Inventory Current assets 140,000 750,000 80,000 420,000 125,000 324,000 45,000 130,000 725,000 50,000 450,000 131,250 345,000 Total assets, net 700,000 70,000 Current liabilities Cash sales 400,000 120,000 Credit sales (or sales sold on credit) Cost of goods sold Note: Use 360 days for 1 year. 310,000

PROBLEM 2: The following selected data taken from the financial statements of Citizens, Inc. for the year indicated, amounts, all in Philippine peso: 2019 2020 2021 Accounts receivable, net 40,000 40,000 120,000 42,500 50,000 45,000 Inventory Current assets 140,000 750,000 80,000 420,000 125,000 324,000 45,000 130,000 725,000 50,000 450,000 131,250 345,000 Total assets, net 700,000 70,000 Current liabilities Cash sales 400,000 120,000 Credit sales (or sales sold on credit) Cost of goods sold Note: Use 360 days for 1 year. 310,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

Still on problem 2, estimate the number of days in inventory for 2020.

a. 50 days

b. 60 days

c. 70 days

d. none of the above

PROBLEM 2:
The following selected data taken from the financial statements of Citizens, Inc. for the year
indicated, amounts, all in Philippine peso:
2020
42,500
50,000
140,000
750,000
80,000
420,000
125,000
2019
2021
Accounts receivable, net
40,000
40,000
120,000
700,000
45,000
45,000
130,000
725,000
50,000
Inventory
Current assets
Total assets, net
Current liabilities
70,000
400,000
120,000
Cash sales
Credit sales (or sales sold on credit)
Cost of goods sold
Note: Use 360 days for 1 year.
450,000
131,250
345,000
310,000
324,000

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