Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit. Year 1 Year 2 Account receivable $150,000 $170,000 Inventory $900,000 $1,000,000 Account payable $1,100,000 $1,200,000 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.

Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit. Year 1 Year 2 Account receivable $150,000 $170,000 Inventory $900,000 $1,000,000 Account payable $1,100,000 $1,200,000 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.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

See similar textbooks

Similar questions

XYZ's receivables turnover is 4x. The accounts receivable at year-end are $600,000. The average collection period is 90 days. What was the sales figure for the year assuming all sales are on credit? O $6,000,000 O $2,400,000 O $54,000,000 O $60,000
Compute the level of the firm's accounts receivable
X Company had credit sales of $700,000 during the year. End of year accounts receivable was $60,000 and beginning accounts receivable was $40,000. Compute the company's receivables turnover ratio. a. 0.07. b. 11.7. c. 14.0. d. 17.5. e. 35.0.
A firm has sales of $1.4 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $205,000. What is the average collection period? (Use 365 days in a year. Do not round intermediate calculation. Round the final answer to the 1 decimal place.) Average collection period days 76thjbnn
Firm B has accounts receivable of $5,000,000 and annual sales of $9,000,000. What is the firm's days sales outstanding (DSO)? Assume a 365-day year.
At year-end, Harem Company reported accounts receivable of P8,200,000 with the following analysis: Accounts known to be worthless 100,000 Advance payments on purchase orders Advances to subsidiary 400,000 1,000,000 Customers' accounts reporting credit balances arising from sales returns ( 600,000) Trade accounts receivables 3,500,000 Subscription receivable due in 30 days Trade installments receivable due 1-18 months, 2,200,000 Including unearned finance charge of P50,000 Trade accounts receivable from officers, due currently Trade accounts on which postdated checks are held and No entries were made on receipt of checks 850,000 150,000 200,000 What is the correct balance of trade accounts receivable?
Please help me this question general accounting
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
General finance
An entity provided the following information for the current year: Accounts receivable – January 1 P2,000,000 Credit sales 10,000,000 Collection from customers, excluding recovery of accounts written off 8,000,000 Accounts written off as worthless 100,000 Sales return 500,000 Recovery of accounts written off 50,000 Estimated future sales returns on December 31 150,000 Estimated uncollectible accounts on December 31 per aging 300,000 What is the “amortized cost” of accounts receivable on December 31?
None
K Accounts receivable management This table, shows that Blair Supply had an end-of-year accounts receivable balance of $300,000. The table also shows how much of the receivables balance originated in each of the previous six months. The company had annual sales of $2.40 million and it normally extends 30-day credit terms to its customers. a. Use the year-end total to evaluate the firm's collection system. b. If 70% of the firm's sales occur between July and December, would this affect the validity of your conclusion in part a? Explain. a. The average collection period is days. (Round to two decimal places.)