Procter & Gamble is a multinational corporation that manufactures and markets many household products. Assume sales for thecompany in a recent year were $66,000 (all amounts In millions). The annual report did not disclose the amount of credit sales, so wewill assume that 90 percent of sales were on credit. The average gross profit on sales was 42 percent. Additional account balanceswere:Accounts receivable (net)InventoryEnding$6,5006,831Beginning$6,5006,292Required:Compute Procter & Gamble's receivables turnover ratio and Its Inventory turnover ratio. On average, how many days does it take forthe company to collect its accounts receivable and sell its Inventory?Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute Procter & Gamble's receivables turnover ratio and its inventory turnover ratio.Note: Round your intermediate calculations and final answers to 2 decimal places.TurnoverAccounts receivableInventory

To compute Procter & Gamble's receivables turnover ratio and inventory turnover ratio , we need…

Answered: Procter & Gamble is a multinational…

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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Marbel had $4,448 million in sales and $1,218 million in ending accounts receivable for the current period. For the same period, Maxtel reported $5,703 million in sales and $1,145 million in ending accounts receivable. Calculate the days’ sales uncollected for both companies as of the end of the current period. Marbel Maxtel Which company is doing a better job in managing the collection of its receivables?
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Ortiz Lumber Yard has a current accounts receivable balance of $350,000. Credit sales for the year just ended were $2,940,000. Accounts Receivable Turnover is 8.4 Times 7.6 Times 5.4 Times 6.8 Times 4.2 Times
The balance of Lloyd Corporation's accounts payable at the beginning of the most recent year was $53,000. At the end of the year, the accounts payable balance was $55,000. Lloyd's sales revenue for the year was $3,130,000, while its cost of goods sold for the year was $1,566,000. Calculate Lloyd's days' payable outstanding (DPO) for the year. Assume inventory levels are constant throughout the year. If the credit terms from Lloyd's suppliers are n/30, how would you interpret Lloyd's DPO? (Round the DPO to two decimal places, XXX.) KIYE Lloyd's days' payable outstanding for the year is A Lloyd is paying later than acceptable since the credit terms are n/30, which is usually characteristic of a company with great liquidity B. Since the credit terms are n/30, Lloyd is paying ahead of schedule, which is usually characteristic of a company with great liquidity C. Since the credit terms are n/30, Lloyd is paying later than acceptable, which is usually characteristic of a company with poor…
A company has net income of $182,000, a profit margin of 9.90 percent, and an accounts receivable balance of $106,014. Assuming 69 percent of sales are on credit, what is the company's days' sales in receivables? Multiple Choice 21.05 days 40.40 days 30.50 days
BC Training reports sales revenue of $2,800,000. Average inventory during the year was $130,000. The inventory turnover ratio for the year is 8.0.What amount of gross profit would the company report in its income statement? Gross profit
Adams Furniture has a quick ratio of 2.00x, $37,575 in cash, $20,875 in accounts receivable, some inventory, total current assets of $83,500, and total current liabilities of $29,225. The company reported annual sales of $100,000 in the most recent annual report. Additionally, the company’s cost of goods sold is 75% of sales. Over the past year, how often did Adams Furniture sell and replace its inventory? 8.01x 3.29x 2.86x 2.99x
Universal Sports Supply began the year with an accounts receivable balance of $200,000 and a year-end balance of $220,000. Credit sales of $750,000 generate a gross profit of $250,000. Calculate the receivables turnover ratio for the year. Universal Sports Supply Receivables Turnover Ratio Numerator/Denominator Amounts 0 times
Valenzuela, Incorporated, has a cash cycle of 47 days, an operating cycle of 70 days, and an inventory period of 30.5 days. The company reported cost of goods sold in the amount of $349,000, and credit sales were $572,000. What is the company's average balance in accounts payable and accounts receivable? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Average accounts payable Average accounts receivable

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