TB MC Qu. 14-50 (Algo) Natcher Corporation's accounts receivable at the end... Natcher Corporation's accounts receivable at the end of Year 2 was $150,000 and its accounts receivable at the end of Year 1 was $157,000. The company's inventory at the end of Year 2 was $153,000 and its inventory at the end of Year 1 was $145,000. Sales, all on account, amounted to $1,406,000 in Year 2. Cost of goods sold amounted to $824,000 in Year 2. The company's operating cycle for Year 2 is closest to: (Round your intermediate calculations to 1 decimal place.) Multiple Choice 75.6 days 106.1 days 48.9 days 71.9 days

TB MC Qu. 14-50 (Algo) Natcher Corporation's accounts receivable at the end... Natcher Corporation's accounts receivable at the end of Year 2 was $150,000 and its accounts receivable at the end of Year 1 was $157,000. The company's inventory at the end of Year 2 was $153,000 and its inventory at the end of Year 1 was $145,000. Sales, all on account, amounted to $1,406,000 in Year 2. Cost of goods sold amounted to $824,000 in Year 2. The company's operating cycle for Year 2 is closest to: (Round your intermediate calculations to 1 decimal place.) Multiple Choice 75.6 days 106.1 days 48.9 days 71.9 days

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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Q5. Shown below are selected financial data for Planet X, Inc. and Planet Y, Inc., at the end of the current year: Planet X, Inc. Planet Y, Inc. $ 700,000 550,000 30,000 80.000 150,000 100,000 Net credit sales Cost of goods sold Cash $ 800,000 600,000 80,000 Accounts receivable (net) 85,000 60,000 110,000 Inventory Current liabilities Instructions a. For each of the two companies, compute the following: 1. Current ratio 2. Quick ratio 3. Number of times inventory turned over during the year and the average number of days required to tum over inventory (round computation to the nearest day). 4. Number of times accounts receivable turned over during the year and the average number of days required to collect accounts receivable (round computation to the nearest day). b. From the viewpoint of a short-tem creditor, comment on the quality of each company's operations. To which company would you prefer to sell $40,000 in merchandise on a 30-day open account?
TB MC Qu. 11-161 (Algo) A company purchases its inventory from... A company purchases its inventory from suppliers on account. During the year, its inventory account increased by $18 million and its accounts payable to suppliers decreased by $2 million. If cost of goods sold was $460 million, its cash outflows to inventory suppliers totaled: Multiple Choice $480 million. $440 million. $476 million. $444 million.
45. Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000Allowance for doubtful accounts, 1/1/22 28,600Cash sales 300,000Sales on account, terms: 2/10, 1/15, n/30 2,560,000Cash received from customers during the year 2,400,000Accounts written off during the year 17,600Cash refunds given to cash customers for sales returns and allowances 15,000Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000Discount taken (1,440,000 x 2%) ( 28,800) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written and subsequent…
11. Subject:- Accounting Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $785,000; Allowance for Doubtful Accounts has a credit balance of $7,000; and sales for the year total $3,530,000. Bad debt expense is estimated at 1/4 of 1% of sales.
A company had net sales of $29, 800and accounts receivable of S4, 400for the current period. Its days' sales uncollected equals: (Use 365 days a year.)O A) 65.09 days.O B) 45.89 days.. C) 69.19 days.O D) 53.89 days.O E) 6.77 days.28A company had net sales of $29,800and accounts receivable of $4,400 for the current period. Its days' sales uncollected equals: (Use 365 days a year.)O A) 65.09 days.O B) 45.89 days.. C) 69.19 days.O D) 53.89 days.O E) 6.77 days.28
Accounts Receivable Turnover and Average Collection Period VanPoole Corporation disclosed the following financial information (in millions) in its recent annual report: Year 1 Year 2 $167,096 $181,662 33,350 32,870 32,870 32,635 Net sales Beginning accounts receivable (net) Ending accounts receivable (net) a. Calculate the accounts receivable turnover ratio for both years. b. Calculate the average collection period for both years. Notes: 1. Round all answers to one decimal place. 2. Use rounded answer from part a. to compute the average collection period. Year 1 Year 2 a. Accounts receivable turnover b. Average collection period (days) 0 0 0 0 c. Is the company's accounts receivable management improving or deteriorating?
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q. 13 A company has $628 in inventory, $1,921 in net fixed assets, $300 in accounts receivable, $141 in cash, and $354 in accounts payable. What are the company’s total current assets? $769 $1,069 $2,990 $1,123 $1,423
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52. What is the amount of bad debts expense in its December 31, 2022 Statement of Comprehensive income assuming the Dolor's policy is to provide 5% of the outstanding balance of accounts receivable as uncollectible and beginning balance of allowance of P20,000? The details of the accounts receivable of Dolor Corporation as December 31, 2022 shows the following: Beginning balance P3,450,000 2,800,000 Sales on account made to customers Collection of accounts receivable during the year 4.200.000 90,000 Accounts written off as uncollectible The following transactions were included in the recorded transactions during the year: a. Invoice dated December 28, 2022 for P350,000 was shipped on December 31, 2022 terms FOB destination. The goods were recorded as sale on account and was received by Customer Bin on January 3, 2023. b. Invoice dated and recorded on November 30, 2022 was erroneously priced at P32 per unit. There were 11,000 units of goods delivered FOB destination which were received…
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