QUESTION 2 The following information was taken from the books of DCW Ltd: 31/12/20x3 Inventory Purchases Trade and other payables Investments Furniture Vehicles Sales Customs and excise Net income before interest and taxation Bank overdraft Trade and other receivables 31/12/20x4 Rands 160 000 775 000 210 160 70 000 45 000 85 000 910 000 40 000 94 000 51 320 131 110 Rands 130 000 690 000 124 224 70 000 70 000 40 000 760 000 35 000 75 000 60 000 110 810 ADDITIONAL INFORMATION: R 7 000 interest was paid during the year, while no interest was received. All purchases are on credit and 25% of the sales are for cash. I Assume 360 working days per annum. Calculate the following for the year ended 31 December 20x4: 1. Net profit before interest and tax margin (round off to two decimal places). 2. Debtors' collection period (round off to the nearest whole number). 3. Acid test ratio (round off to two decimal places).

QUESTION 2 The following information was taken from the books of DCW Ltd: 31/12/20x3 Inventory Purchases Trade and other payables Investments Furniture Vehicles Sales Customs and excise Net income before interest and taxation Bank overdraft Trade and other receivables 31/12/20x4 Rands 160 000 775 000 210 160 70 000 45 000 85 000 910 000 40 000 94 000 51 320 131 110 Rands 130 000 690 000 124 224 70 000 70 000 40 000 760 000 35 000 75 000 60 000 110 810 ADDITIONAL INFORMATION: R 7 000 interest was paid during the year, while no interest was received. All purchases are on credit and 25% of the sales are for cash. I Assume 360 working days per annum. Calculate the following for the year ended 31 December 20x4: 1. Net profit before interest and tax margin (round off to two decimal places). 2. Debtors' collection period (round off to the nearest whole number). 3. Acid test ratio (round off to two decimal places).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

hello, need help on this section please
8
The Foundational 15 [LO13-1, LO13-2] Skip to question [The following information applies to the questions displayed below.] Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Beginning Balance Cash and cash equivalents $ 118,400 $ 142,300 Accounts receivable 93,900 101,200 Inventory 126,100 115,000 Total current assets 338,400 358,500 Property, plant, and equipment 333,000 322,000 Less accumulated depreciation 111,000 80,500 Net property, plant, and equipment 222,000 241,500 Total assets $ 560,400 $ 600,000 Accounts payable $ 73,600 $ 130,700 Income taxes payable 57,100 77,300 Bonds payable 138,000 115,000 Common stock 161,000 138,000 Retained earnings 130,700 139,000 Total liabilities and stockholders’ equity $…
Don't upload image
Data table (Click on the icon in order to copy its contents into a spreadsheet.) Inventory Common stock Cash Operating expenses Short-term notes payable Interest expense Depreciation expense Sales Accounts receivable Accounts payable Long-term debt Cost of goods sold Buildings and equipment Accumulated depreciation Taxes General and administrative expense Retained earnings 6,470 45,070 16,570 1,380 600 870 540 12,740 9,560 4,750 54,860 5,710 122,330 33,960 1,400 870 ? I X
ces ■ ■ I January 1 April 1 October 1 I Required information [The following information applies to the questions displayed below.] Beginning Inventory Purchased Purchased The following information pertains to the inventory of Parvin Company during Year 2. Cash flows from operating activities: Cash inflow from customers. Cash outflow for inventory Cash outflow for operating expenses Cash outflow for income tax expense Net cash flow from operating activities Parvin Company Cash Flows from Operating Activities FIFO ■ ■ 500 units @ $34 2,200 units @ $39 700 units @ $42 $ 320,000 $ During Year 2, Parvin sold 3,100 units of inventory at $85 per unit and incurred $42,500 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 40 percent income tax rate. Parvin started the period with cash of $77,000, inventory of $17,000, common stock of $52,000, and retained earnings of $42,000. d. Determine the cash…
balance sheets Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity Problem 13-5A (Algo) Part 1 $ 19,500 37,400 84,640 5,900 350,000 $ 497,440 $ 33,000 56,400 134,500 6,900 304,400 $ 535,200 $ 68,340 86,800 190,000 152,300 $ 497,440 $ 535,200 $ 91,300 115,000 206,000 122,900 statement Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) invent sales in inventory, and () days' sales uncollected. Note: Do not round intermediate calculations. 1b. Identify the company…
Please help to answer question f
Question 13 The extract disclosed below relates to JohNicho Limited for the year ended December 31, 2021 JohNicho Limited Statement of Comprehensive Income for the year ended 31st December: Net Sales Cost of goods sold SG&A Other costs Operating Income (EBIT) Interest Extraordinary income EBT Taxes Net Income Non-current assets Property, Plant & Equipment Motor vehicles Furniture Total non-current assets Current assets Trade Receivables Other Current Assets Inventories Total Current Assets Total assets Current liabilities Accounts payable Other current liabilities Total Current Liabilities JohLex Limited Statement of Financial Position as at 31st December: 2020 GHC Long-term Debt Debenture Total non-current liabilities 10 Shareholders' equity Total Liabilities and Equity GHC 6,386 18,472 6,759 8,461 25,265 19,811 20,753 Required to calculate: (a) Inventory turnover period (in days) (b) Receivable collection period (in days) (c) Payable collection period (in days) (d) Working capital…
Entry for cash sales; cash short Instructions Chart of Accounts Journal Instructions The actual cash received from cash sales was $37,650, and the amount indicated by the cash register total was $37,653. Journalize the entry to record the cash receipts and cash sales. Refer to the Chart of Accounts for exact wording of account titles. T41 Merthandise nvemory 516 Cash Short and Over 145 Office Supplies Check My Work
Subject: accounting
i need help with c and e .. pls explain