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Problem Solving 1. Parliament Company has an average collection period of 35 days and reported sales of $3,400,000 for the year ended 2014. How much is the company's average accounts receivable for the year?

Problem Solving 1. Parliament Company has an average collection period of 35 days and reported sales of $3,400,000 for the year ended 2014. How much is the company's average accounts receivable for the year?

FINANCIAL ACCOUNTING
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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Problem Solving 1. Parliament Company has an average collection period of 35 days and reported sales of P3,400,000 for the year ended 2014. How much is the company's average accounts receivable for the year? 2. Cane Company shows the following data: ● Long-term liabilities Owner's Equity Non-current Assets Inventory Cash ● Marketable Securities Receivables Compute for the current ratio of Cane Company for 2014. Compute for the quick ratio of Cane Company for 2014. Assuming a net income of 200,000 for 2014: Compute for return on assets. Compute for return on equity. 3. Pudding Company has current assets of 1,500,000 with a current ratio of 1.2. and a quick ratio of 0.9. ● ● a. b. c. ● a. How much is Pudding's current liabilities? b. How much is Pudding's inventory? 4. The following ratios were computed for Tourist Company for the year 2014: ● Asset turnover, 1.60 times ● 2014 $2,000,000 1,500,000 2,500,000 500,000 200,000 900,000 500,000 ● Return on assets, 5% Compute for Tourist' profit margin. 5. Skateboard Company reported sales amounted to $5,000,000. During the year, average total assets were $3,000,000 with average receivables of $500,000. 30% of the sales were made on cash basis with the rest being made on credit. How much is the total assets turnover? 2013 Compute for the receivable turnover. ● Compute for days sales outstanding (average collection period). 6. Sales of Jet Company amounted to $2,000,000. Cost of sales was 60% of sales. Average inventory levels during the year was $400,000. 1,500,000 800,000 1,250,000 300,000 50,000 1,000,000 75,000 Compute for inventory turnover. Compute for average days in inventory (average inventory period).
Transcribed Image Text:Problem Solving 1. Parliament Company has an average collection period of 35 days and reported sales of P3,400,000 for the year ended 2014. How much is the company's average accounts receivable for the year? 2. Cane Company shows the following data: ● Long-term liabilities Owner's Equity Non-current Assets Inventory Cash ● Marketable Securities Receivables Compute for the current ratio of Cane Company for 2014. Compute for the quick ratio of Cane Company for 2014. Assuming a net income of 200,000 for 2014: Compute for return on assets. Compute for return on equity. 3. Pudding Company has current assets of 1,500,000 with a current ratio of 1.2. and a quick ratio of 0.9. ● ● a. b. c. ● a. How much is Pudding's current liabilities? b. How much is Pudding's inventory? 4. The following ratios were computed for Tourist Company for the year 2014: ● Asset turnover, 1.60 times ● 2014 $2,000,000 1,500,000 2,500,000 500,000 200,000 900,000 500,000 ● Return on assets, 5% Compute for Tourist' profit margin. 5. Skateboard Company reported sales amounted to $5,000,000. During the year, average total assets were $3,000,000 with average receivables of $500,000. 30% of the sales were made on cash basis with the rest being made on credit. How much is the total assets turnover? 2013 Compute for the receivable turnover. ● Compute for days sales outstanding (average collection period). 6. Sales of Jet Company amounted to $2,000,000. Cost of sales was 60% of sales. Average inventory levels during the year was $400,000. 1,500,000 800,000 1,250,000 300,000 50,000 1,000,000 75,000 Compute for inventory turnover. Compute for average days in inventory (average inventory period).
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