Answered: The company's net credit sales are…

The company's net credit sales are $72,000. The beginning balance and ending balance of net accounts receivable are $6,000 and $10,000 respectively. What is the receivables turnover ratio?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

See similar textbooks

Related questions

Q: Please provide the accurate answer to this general accounting problem using appropriate methods.

A: Step 1: Definition of True Cash BalanceTrue Cash Balance refers to the accurate ending cash balance…

Q: Don't use ai given answer accounting

A: Step 1: Definition of Owner's EquityOwner's Equity is the residual interest in the assets of a…

Q: Cost of production report is a ______________ Financial statement Production Process report Order…

A: A Cost of Production Report is used in process costing systems to summarize the production and cost…

Q: What amount will be posted to retained earnings?

A: Explanation of Retained Earnings: Retained Earnings represents the cumulative profits a company has…

Q: Please explain the solution to this financial accounting problem with accurate explanations.

A: Step 1: Definition of Liabilities Change Based on Accounting EquationLiabilities change based on the…

Q: Please show me the correct way to solve this financial accounting problem with accurate methods.

A: Step 1: Definition of Turnover Ratio (Operating Asset Turnover)The Operating Asset Turnover Ratio is…

Q: sub general acoounting

A: Step 1: Definition of EquityEquity represents the value of ownership in a company. It is the…

Q: I need help with this general accounting problem using proper accounting guidelines.

A: Concept of Net Fixed Assets:Net fixed assets refer to the value of a company's long-term tangible…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Production Budget A production budget outlines the number of units that must…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: To calculate the Direct Labor Rate Variance, use the formula:(Actual Rate - Standard Rate) × Actual…

Q: What is the number of widgets the firm must sell

A: Explanation of Break-Even Point:The break-even point is the level of sales at which a company's…

Q: I need help with question is correct answer and accounting question

A: Step 1: Definition of Conversion Costs and Manufacturing OverheadConversion Costs are the costs…

Q: Fixed cost per unit decreases when ______________ Production volume increases. Production volume…

A: Fixed costs are those costs of production which remain constant regardless of the quantity of…

Q: accounting?

A: Step 1: Definition of Corporate Value using Free Cash Flow ApproachThe Corporate Value using the…

Q: Please provide the correct solution to this financial accounting question using valid principles.

A: Step 1: Definition of Shareholders' EquityShareholders' Equity represents the residual interest in a…

Q: NovaTech Inc. had an accounts receivable balance of $150,000 at the beginning of the year and…

A: Step 1: Definition of Percentage ChangePercentage Change is used to express how much a value has…

Q: Please provide the correct answer to this financial accounting problem using accurate calculations.

A: Provided Data:Selling Price per Unit = $420Variable Cost per Unit = $295Fixed Costs = $187,500Step…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: Step 1: Definition of Variable Overhead Efficiency VarianceThe Variable Overhead Efficiency Variance…

Q: Stockholders' equity at the end of the year was ____.

A: Definition of Stockholders' Equity:Stockholders' equity represents the residual interest in a…

Q: Step by step solution

A: Calculation of Total Variable CostTotal Variable Cost = Supplies + Laundry…

Q: what is the componys debt to equity ratio ? fast answer please

A: Solution: Step 1: Understand what the debt-to-equity ratio means.The debt-to-equity ratio measures…

Q: Opportunity cost is the best example of ______________ Sunk Cost Standard Cost Relevant Cost…

A: Analyzing Each Option in Detail:1. Sunk Cost ❌Definition: Costs that have already been incurred and…

Q: What was the accounts receivable turnover?

A: Step 1: Definition of Accounts Receivable TurnoverAccounts receivable turnover is a financial metric…

Q: Can you please solve this questions

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is a budgeted rate…

Q: Please provide the solution to this general accounting question with accurate financial…

A: To find the amount of capital improvements, we use this formula: Adjusted Basis = Original Basis +…

Q: Can you explain this general accounting question using accurate calculation methods?

A: Step 1: Definition of Cash Paid to SuppliersCash paid to suppliers is the amount of money a company…

Q: I am trying to find the accurate solution to this general accounting problem with appropriate…

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is a planning and…

Q: Correct Answer

A: Provided Data:Cost of Goods Manufactured = $70,000Cost of Goods Sold = $76,000Finished Goods…

Q: Acme Corporation's pension plan assets were$3,420 million at the beginning of the year and $3,880…

A: Here's how to calculate the percentage rate of return on the plan assets: 1. Calculate the net…

Q: Can you solve this general accounting problem using accurate calculation methods?

A: Step 1: Definition of Net IncomeNet income is the amount of money a company or trust has left after…

Q: I am looking for the correct answer to this general accounting problem using valid accounting…

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is an estimated…

Q: Solve this Financial Accounting Problem

A: Provided Data:Beginning Inventory = $6,500Purchases = $18,200Sales (assumed to be Cost of Goods…

Q: Can you solve this financial accounting question with accurate accounting calculations?

A: Step 1: Definition of Cost AllocationCost Allocation is the process of distributing a company's…

Q: Solve this MCQ

A: Explanation of Right-of-Use Asset: A right-of-use asset represents a lessee's right to use an…

Q: Please solve this question by using appropriate method.

A: Let's calculate the Net Income for Sunnydale Electronics step by step.Given:Sales Revenue =…

Q: Delta Pack Ltd. produces custom packaging. The total manufacturing cost for producing 10,000 boxes…

A: Step 1: Definition of Total Production CostTotal Production Cost is the sum of fixed and variable…

Q: Please provide the solution to this general accounting question with accurate financial…

A: Summit IndustriesBalance SheetAs of December 31, 2023(Amounts in thousands)AssetsCash…

Q: General Accounting

A: Step 1: Definition of Gross Profit MethodThe Gross Profit Method estimates ending inventory by…

Q: hello teacher please solve this problem

A: Step 1: Definition of Weeks of SupplyWeeks of Supply refers to the number of weeks it would take for…

Q: what will be the sales growth rate for 2526? accounting question

A: To calculate the sales growth rate for 2526, we use the sustainable growth rate (SGR) formula, since…

Q: What should be the total sales amount?

A: Explanation of Cost of Goods Sold: Cost of goods sold (COGS) represents the direct costs…

Q: What was the ball cost of goods manufactured for the month?

A: Explanation of Raw Materials Used:Raw materials used refer to the direct materials consumed in the…

Q: what is its leval of inventory ? accounting

A: Step 1: Definition of Quick RatioThe quick ratio (also known as the acid-test ratio) measures a…

Q: How many units must be sold to earn income of $60,000? accounting question

A: Step 1: Definition of Target Profit Sales in UnitsTo determine the number of units needed to reach a…

Q: Provide Answer

A: To compute the predetermined overhead rate as a percent of direct labor and direct materials, we…

Q: The Stockholders equity at the end of the year

A: Provided Data:Beginning assets = $410,000Beginning liabilities = $265,000Revenues = $375,000Expenses…

Q: A corporation has discovered that an employee has been embezzling funds from the company over the…

A: Ethical ObligationsTransparency and HonestyTransparency is a cornerstone of ethical corporate…

Q: I need the correct answer to this financial accounting problem using the standard accounting…

A: Step 1: Definition of Cash Paid for WagesCash paid for wages refers to the actual amount of money…

Q: Please explain the solution to this general accounting problem using the correct accounting…

A: Step 1: Definition of Average Collection Period (ACP)The Average Collection Period (ACP) is the…

Q: Financial accounting

A: Step 1: Define Net IncomeNet income is the amount a company earns after subtracting all expenses,…

Question

Can you help me solve this general accounting problem using the correct accounting process?

The company's net credit sales are $72,000. The
beginning balance and ending balance of net accounts
receivable are $6,000 and $10,000 respectively.
What is the receivables turnover ratio?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Montalcino Company had net sales of 54,000,000. Montalcino had the following balances: Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note: Round answers to two decimal places. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Assume that an organization asserts that it has $35 million in net accounts receivable. Describe specifically what management is asserting with respect to net accounts receivable.
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
The following select financial statement information from Vortex Computing. Compute the accounts receivable turnover ratios and the number of days sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Vortex Computing if industry average for accounts receivable turnover ratio is 4 times and days sales in receivables ratio is 85 days?
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
Berry Farms has an accounts receivable balance at the end of 2018 of $425,650. The net credit sales for the year are $924,123. The balance at the end of 2017 was $378,550. What is the number of days sales in receivables ratio for 2018 (round all answers to two decimal places)?
FINANCIAL RATIOS Based on the financial statements, shown on pages 605606, for McDonald Carpeting Co. (income statement, statement of owners equity, and balance sheet), prepare the following financial ratios. All sales are credit sales. The balance of Accounts Receivable on January 1, 20--, was 6,800. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and the average number of days required to collect receivables 6. Inventory turnover and the average number of days required to sell inventory
FINANCIAL RATIOS Based on the financial statements, shown on pages 603604, for McDonald Carpeting Co. (income statement, statement of owners equity, and balance sheet), prepare the following financial ratios. All sales are credit sales. The balance of Accounts Receivable on January 1, 20--, was 6,800. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventory
South Rims has an accounts receivable balance at the end of 2018 of $357,470. The net credit sales for the year are $769,346. The balance at the end of 2017 was $325,300. What is the accounts receivable turnover rate for 2018 (rounded to two decimal places)? A. 2.02 times B. 2.25 times C. 2.15 times D. 1.13 times
Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?