Problem 6. VSB Enterprise has 3 items in its current assets section of the balance sheet; cash, AR and inventory. Given is the following information: Credit sales Inventory turnover Working capital Current ratio 75% of total sales 5x P1 120 000 2:1 What is the amount of inventory? Quick ratio Average collection period Working days 1.25:1 42 days 360

Problem 6. VSB Enterprise has 3 items in its current assets section of the balance sheet; cash, AR and inventory. Given is the following information: Credit sales Inventory turnover Working capital Current ratio 75% of total sales 5x P1 120 000 2:1 What is the amount of inventory? Quick ratio Average collection period Working days 1.25:1 42 days 360

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 Content Area The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $30,000 Accounts receivable (net) 20,000 Merchandise inventory 15,000 Property, plant, and equipment 185,000 Total assets $250,000 Liabilities and Stockholders' Equity Current liabilities $45,000 Long-term liabilities 70,000 Stockholders' equity—common 135,000 Total liabilities and stockholders' equity $250,000 Income Statement Sales $85,000 Cost of merchandise sold 45,000 Gross profit $40,000 Operating expenses (15,000) Interest expense (5,000) Net income $20,000 Number of shares of common stock outstanding 6,000 Market price per share of common stock $20 Total dividends paid $9,000 Net cash flows from operating…
53 Category Sales Cost of goods sold As the operations manager for Valley Kayaks (as described in the previous problem), you find yourself faced with an interesting situation. Marketing has informed you that they have lost a number of sales because of a lack of inventory. Kayaks, being seasonal in nature, have to be in stock at your dealers if they are to be sold (customers are not willing to wait). The director of marketing proposes that you increase inventories by 20 percent (a major investment to you). She has also given the information in the following table. Use Figure 2.3. Variable expenses Fixed expenses Inventory Accounts receivable Other current assets Fixed assets Category Sales Cost of goods sold Variable expenses Fixed expenses Inventory Current Values $ 5,390,000 $ 3,850,000 770,000 269,500 315,000 350,000 741,000 444,000 $ $ Current Values $ 5,390,000 S 3.850,000 770.000 $ 269,500 315.000 $ Proposed Impact of Inventory Increase 20% + (improvement) 0% a.Using the…
4. The records of Ree-ree Co. show the following information: Increase in accounts payable 10,000 Disbursements for purchases 80,000 Decrease in inventory 30,000 How much is the cost of goods sold? a.120,000 b. 100,000 c. 60,000 d.40,000
Assets Cash Accounts receivable Inventory Year 2 $ 4,000 15,000 35,000 Assuming that net credit sales for Year 2 totaled $270,000, what is the company's most recent accounts receivable turnover? Multiple Choice 20 times 18 times 7.7 times 22.5 times Year 1 $2,000 12,000 $ 38,000 Help Save & Exit Submit
Question Content Area The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $30,000 Accounts receivable (net) 20,000 Merchandise inventory 15,000 Property, plant, and equipment 185,000 Total assets $250,000 Liabilities and Stockholders' Equity Current liabilities $45,000 Long-term liabilities 70,000 Stockholders' equity—common 135,000 Total liabilities and stockholders' equity $250,000 Income Statement Sales $85,000 Cost of merchandise sold 45,000 Gross profit $40,000 Operating expenses (15,000) Interest expense (5,000) Net income $20,000 Number of shares of common stock outstanding 6,000 Market price per share of common stock $20 Total dividends paid $9,000 Net cash flows from operating…
Event 4: Purchased 15,000 units of inventory at $7.00 each on account. Account Amount Event 4: Effect on Retained Earnings: $ Effect on Net Income: $ X
GE MINDTAP omework 5065600. 6500550 36055055 f6 Complete the balance sheet and sales information using the following financial data: 6 Total assets turnover: 1.1x Days sales outstanding: 73.0 daysa Inventory turnover ratio: 4x Fixed assets turnover: 3.0x Current ratio: 2.0x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales Calculation is based on a 365-day year. Do not round intermediate calculations. Round your answers to the nearest dollar. Balance Sheet Cash Accounts receivable Inventories Fixed assets Total assets Sales Q Search 80000 eBook f7 & 7 f8 * 4+ 8 $ $240,000 fg @MO hp IAA 9 ISBN 9780357517642&nbld-3626933&snap... ✰ f10 Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold ▶II O 99+ f11 O f12 S $ B + g ins 60,000 84,000 prt sc @ 0 delete Q Check My Wo backspace Check hor
Activity 6: Vertical Analysis and Interpretation of SFP and SCI Directions: From these randomly ordered accounts of Dale Merchandising prepare a Statement of Financial Position and Statement of Comprehensive Income. Make a Vertical Analysis and interpret the results. The balances shown are as of and for the year ending 12/31/2019. Sales Returns and Allowances Accumulated Depreciation Merchandise Inventory, December 31, 2019 Sales 50,000.00 80,000.00 1,050,000.00 100,000.00 400,000.00 190,000.00 100,000.00 2,000.00 50,000.00 220,000.00 50,000.00 29,000.00 10,000.00 200,000.00 30,000.00 220,000.00 200,000.00 100,000.00 200,000.00 8,000.00 200,000.00 Merchandise Inventory, January 1, 2019 Purchases Selling Expenses Accounts Payable Purchase Returns and Allowances Cash Office Equipment Withdrawals A Proces Sales Discounts Transportation-In General and Administrative Expense Office Supplies Accounts Receivable Notes Payable Prepaid Rent Josh, Capital, Jan. 1, 2019 Purchase Discounts Net…
Complete: Round to Nearest Current Assets Amount Hundredth Percent Cash $ 12,000 % Accounts receivable 9,000 % Prepaid rent Merchandise inventory 5,000 $ 28.000 Total current assets 100 %
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