Refer to the following selected financial information from Texas Electronics. Compute the company's days' sales uncollected for Year 2. (Use 365 days ayear.)Year 2Year 1$ 39,400 $ 34,150109,00095,000CashShort-term investmentsAccounts receivable, netMerchandise inventoryPrepaid expenses69,50089,000130,500 134,50011,600397,500 347,500.14,000Plant assetsAccounts payable103,900 117,300720,500 685,500Net salesCost of goods sold399,500 384,500Multiple Choice86.8.46.5.119.2. Cost of goods sold399,500 384, 500Multiple Choice46519.248155.2

Inventory sales days (DSI) is a financial ratio that reflects the average time a business takes to…

Answered: Refer to the following selected…

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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Refer to the following selected financial information from Texas Electronics. Compute the company's accounts receivable turnover for Year 2. Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets Accounts payable Net sales Cost of goods sold Year 2 $ 39,100 106,000 93,500 129,000 13,700 396,000 105,400 719,000 398,000 Year 1 $ 33,850 68,000 87,500 133,000 11,300 346,000 115,800 684,000 383,000
b. In 20X2, sales increased to $5,890,000 and the assets for that year were as follows: $ 138,000 926,000 991,000 533,000 $ 2,588,000 Cash Accounts receivable Inventory Net plant and equipment Total assets Compute the following: Note: Round your answers to 2 decimal places. 1. Accounts receivable turnover 2. Inventory turnover 3. Fixed asset turnover 4. Total asset turnover Turnover Ratios times times times times
Footfall Manufacturing Ltd. reports the following financial information at the end of the current year: Net Sales $100,000 Debtor’s turnover ratio (based on net sales) 2 Inventory turnover ratio 1.25 Fixed assets turnover ratio 0.8 Debt to assets ratio 0.6 Net profit margin 5% Gross profit margin 25% Return on investment 2% Use the given information to fill out the templates for income statement and balance sheet given below: Income Statement of Footfall Manufacturinf Ltd. for the year ending December 31, 20XX (in $) Sales 100,000 Cost of goods sold Gross profit Other expenses Earnings before tax Tax @50% Earnings after tax Balance Sheet of Footfall Manufacturing Ltd. as at December 31, 20XX (in $) Liabilities Assets Equity Net fixed assetsLong term debt 50,000 InventoryShort term debt Debtors…
Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured bymortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131,100 104,750 79,250 Total liabilities and equity $ 523,000 $ 445,000 $ 377,500 (1-a) Compute the current ratio for each of the three years.(1-b) Did the current ratio improve or worsen over the three…
Blue Elk Manufacturing Balance Sheet For the Year Ended on December 31 Assets Current Assets: Cash and equivalents Accounts receivable Liabilities Current Liabilities: $150,000 Accounts payable $250,000 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment(cost minus depreciation) $2,100,000 Total Debt $1,500,000 Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity Total Assets $3,000,000 Total Liabilities and Equity $1,500,000 $3,000,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Blue Elk Manufacturing generated $500,000 net income on sales of $14,500,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. Suppose Blue…
Patton Corporation had the following items on its financial statements for two recent years: Line Item Description Year 2 Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s number of days’ sales in inventory for Year 2.a. 3.2b. 57.8c. 5.7d. 6.3
Selected balance sheet information and the income statement for Pioneer Industries for the current year are presented below. Selected Balance Sheet Accounts Accounts Receivable Prior Year Current Year $ 24,000 $ 16,000 Inventory 32,000 35,200 Prepaid Rent 1,600 0 Accounts Payable 17,600 22,400 Salaries and Wages 3,200 4,800 Payable 04:23 Depreciation Expense Salaries Expense Income Statement Sales Revenue $ 480,000 Expenses: Cost of Goods Sold 288,000 32,000 48,000 19,200 19,200 17,600 16,000 $ 40,000 Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Enter any deductions and cash outflows as a negative value.) Pioneer Industries Cash Flows from Operating Activities Adjustments to reconcile net income to net cash provided by operating activities: Changes in current assets and current liabilities: $ 0
The following data were taken from a company’s latest financial statements: Annual sales $2,433,332 Cost of goods sold 2,027,778 Inventories 500,000 Accounts receivable 600,000 Accounts payable 300,000 What is the company’s cash conversion cycle? Which answers? 54 days 90 days 111 days 75 days
Pul Company has the following details: Sales (60% is on credit) 1,500,000 Cost of Goods Sold (40% of credit sales) Year1: Year 2: Inventory 300,000 250,000 Accounts Payable 90,000 105,000 Total Assets 1,000,000 850,000 Compute the following: 1. Inventory Turnover ratio 2. Accounts Receivable turnover ratio 3. Accounts payable turnover ratio 4. Asset turnover ratio
Selected data from the financial statements of Rags to Riches are provided below: Current Year Prior Year Accounts Receivable $120,000 $ 76,000 Inventory 24,000 32,000 Total Assets 900,000 760,000 Net Sales 760,000 540,000 Cost of Goods Sold 320,000 420,000 Which of the following would result from vertical analysis of the company's income statement? a. The accounts receivable turnover ratio is 7.76 in the current year. b. Gross profit is 57.9% of net sales for the current year. c. Net sales are 84.4% of total assets for the current year. d. Cost of goods sold decreased by $50,000 or 23.8% during
Patton Corporation had the following items on its financial statements for two recent years: Line Item Description Year 2 Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s working capital for Year 2.a. $725,000b. $1,625,000c. $2,050,000d. $650,000 2. Patton Corporation had the following items on its financial statements for two recent years: Line Item Description Year 2 Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s accounts receivable turnover for Year 2.a.…
Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 32,700 $ 37,849 $ 37,130 Accounts receivable, net 94,775 65,580 51,527 Merchandise inventory 120,330 86,659 53,800 Prepaid expenses 10,118 10,034 4,252 Plant assets, net 285,450 268,303 235,991 Total assets $ 543,373 $ 468,425 $ 382,700 Liabilities and Equity Accounts payable $ 138,006 $ 78,372 $ 51,022 Long-term notes payable 100,111 107,738 83,731 Common stock, $10 par value 163,500 163,500 162,500 Retained earnings 141,756 118,815 85,447 Total liabilities and equity $ 543,373 $ 468,425 $ 382,700 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents.2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable?3. Assuming annual sales have not…

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