Relic Industries manufactures and markets many products you use every day. In 2019, sales for the company were $93,000 (all amounts in millions). The annual report did not report the amount of credit sales, so we will assume that all sales were on credit. The average gross profit percentage was 51.2 percent. Account balances for the year follow: Accounts receivable (net) Inventory Beginning $ 5,300 6,080 Required: 1. Compute the turnover ratios for accounts receivable and inventory. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. Required 1 Required 2 Ending $ 5,700 6,100 Complete this question by entering your answers in the tabs below. Receivables Turnover Ratio Inventory Turnover Ratio Compute the turnover ratios for accounts receivable and inventory. (Do not round intermediate calculations. Round your final answers to 1 decimal place.)

Relic Industries manufactures and markets many products you use every day. In 2019, sales for the company were $93,000 (all amounts in millions). The annual report did not report the amount of credit sales, so we will assume that all sales were on credit. The average gross profit percentage was 51.2 percent. Account balances for the year follow: Accounts receivable (net) Inventory Beginning $ 5,300 6,080 Required: 1. Compute the turnover ratios for accounts receivable and inventory. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. Required 1 Required 2 Ending $ 5,700 6,100 Complete this question by entering your answers in the tabs below. Receivables Turnover Ratio Inventory Turnover Ratio Compute the turnover ratios for accounts receivable and inventory. (Do not round intermediate calculations. Round your final answers to 1 decimal place.)

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

Bevo Corp. started 2022 with $101,000 of inventory on hand. During 2022, $500,000 in inventory was purchased on account with credit terms of 3/15, n/45. Purchases were all made f.o.b. shipping point. All discounts were taken. Cost of goods sold for the year was $366,000. Inventory with an invoice amount of $3,200 was returned for credit. Bevo Corp. paid freight charges of $9,300. Bevo Corp. uses a perpetual inventory system. Calculate the cost of goods available for sale, assuming Bevo Corp. uses the gross method to record purchases. a) 592,100 b) 592,196 c) 607,100 d) 606,700
Space Tech Inc. total annual sales in 2020 were $ 40,000,000 The year ending 12/31/20 account balance for Accounts Receivable (prior to any adjustments) is $ 9,500,000 The year ending 12/31/20 account balance for Allowance for Doubtful Accounts (prior to any adjustme nts) is $ 350,000 The C.F.O. (Chief Finandal Officer) has informe d the accounting departme nt that the year ending 12/31/20 All owance for Doubtful Accounts balance should be 2.5% of annual sales. Required: 1Prepare the necessary year-end adjusting journalentry necessary to reflect the balance expected by the C.F.O. 2 Calculate the Net Accounts Receivable balance (after adjustment).
Use the attachment to answer the following Accounts receivable days outstanding at the end of Year 2 is closest to: a) 30.6 days b) 26.0 days c) 27.0 days d) 6.1 days
Lisa Company began operations in 2018. For the year ended December 31, 2018, Lisa made available the following information: Total merchandise purchases for the year 7,000,000 Merchandise inventory at December 31 1,400,000 Collection from customers 4,000,000 All merchandise was marked to sell at 40% above cost. All sales are on a credit basis and all receivables are collectible. What is the balance of accounts receivable on December 31, 2018?
Number 5
Following information is available for Nick Company for the year ended 2020: Additional information: Amount for accounts receivable (net) at the end of 2019 was $57,000. The inventory as of 01st of January 2020 is calculated as $22,000. Required: Calculation of the following for the year ended 2020: a) Working capital b) Quick ratio c) Inventory turnover ratio. d) Accounts receivable turnover ratio and number of days in the collection assuming 366 days a year.
Ayayai Company provides the following information for the month ended October 31, 2020: sales on credit $ 280,100, cash sales $ 100,100, sales discounts $ 5,100, and sales returns and allowances $ 10,100. Prepare the sales section of the income statement based on this information. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) AYAYAI COMPANY Income Statement (Partial) 24 %24
Winterwear Clothiers reported the following selected items at April 30, 2025 (last year's-2024-amounts also given as needed): View the financial data. Compute Winterwear Clothiers' (a) acid-test ratio, (b) accounts receivable turnover ratio, and (c) days' sales in receivables for the year ending April 30, 2025. Evaluate each ratio value as strong or weak. Winterwear Clothiers sells on terms of net 30. (Round days' sales in receivables to a whole number.) (Ignore leap-years, using a 365-day where needed.) (a) Compute Winterwear Clothiers' acid-test ratio. (Round your final answer to two decimal places. Abbreviation used: Avg. = Average; Invest. = Investment; Liab. = Liabilities; Merch. = Merchandise; Receiv. = Receivable; Rev. = Revenue.) + + + + Financial Data = Acid-test ratio = Accounts Payable 320,000 Accounts Receivable, net: Cash 260,000 April 30, 2025 $ 270,000 Merchandise Inventory: April 30, 2024 170,000 April 30, 2025 290,000 Cost of Goods Sold 1,150,000 April 30, 2024 200,000…
Vaughn Company reported the following balances at June 30, 2022:Sales RevenueSales Returns andAllowancesSales DiscountsCost of Goods Sold$164007002907500 Net sales for the month is $ 16400. $7910. $15700. $15410.
The adjusted trial balance of Cullumber Company shows the following data pertaining to sales at the end of its fiscal year October 31, 2022: Sales Revenue $826,000, Freight-Out $16,600, Sales Returns and Allowances $34,400, and Sales Discounts $16,500. (a) Prepare the sales section of the multiple-step income statement. CULLUMBER COMPANY Income Statement (Partial) $ $ >
The adjusted trial balance of Wildhorse Co. shows these data pertaining to sales at the end of its fiscal year, October 31, 2022: Sales Revenue $904,100; Freight-Out $13,400; Sales Returns and Allowances $20,100; and Sales Discounts $15,500.Prepare the sales section of the income statement.
Denger