The financial statements of SolarTech Industries report net sales of $1,350,000 and accounts receivable of $75,000 and $85,000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?

The financial statements of SolarTech Industries report net sales of $1,350,000 and accounts receivable of $75,000 and $85,000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?

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: What is the present value of this investment?

A: PV = Annual Payment / Interest RateGiven information:Annual interest payment = $3.2 millionMarket…

Q: what was the stockholders' equity at year-end

A: To determine stockholders' equity, we use the accounting equation:Assets=Liabilities+Stockholders'…

Q: Hello tutor please provide correct answer general accounting question

A: Step 1: Define Cost of Goods Sold (COGS)The cost of goods sold (COGS) represents the direct cost of…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Accounts Receivable LevelThe Accounts Receivable Level represents the total…

Q: Accurate Answer

A: Structural dependency analysis is essential for understanding system or organisation component…

Q: I need help with this problem and accounting

A: Step 1: Definition of Profit MarginProfit margin is a financial metric that measures the percentage…

Q: Please solve this question general accounting

A: Step 1: Define Initial Cash FlowThe initial cash flow refers to the total cash outflow required to…

Q: Ans

A: Concept of Break-even PointThe break-even point is the level of sales at which total revenues equal…

Q: Please provide correct solution and accounting question

A: Step 1: Definition of Sales CalculationWe need to determine the sales based on the provided gross…

Q: Please give correct answer this financial accounting question not use ai and chatgpt

A: Step 1: Define Return on Common Stockholders' Equity (ROE)Return on common stockholders' equity…

Q: Kindly halp me with this question general accounting

A: We are given the following information about Sterling Co.'s stock:The next dividend (D₁) is $2.50…

Q: Desert Rose Electronics implemented a new returns authorization process. Returns require: inspection…

A: Detailed Step-by-Step Solution for Weighted Acceptance Score We need to calculate the weighted…

Q: What should be the adjusted cash balance

A: Explanation of Adjusted Cash Balance: The adjusted cash balance refers to the actual cash amount…

Q: Need answer

A: Explanation of Gross Margin:Gross Margin represents the percentage of total sales revenue that the…

Q: I need correct answer general accounting question

A: Step 1: Define Break-Even SalesBreak-even sales represent the total revenue required for a company…

Q: What is the breck even point in bags?

A: The break-even mark for Harvest Farms Ltd., which retails 40-pound bags of apples at $12 each, is…

Q: Compute the manufacturing overhead rate

A: The manufacturing overhead rate is computed using the predetermined overhead rate…

Q: How many inspection per month would the new employee have

A: To attain a monthly profit of $2,000, the new employee at Wilcox Vehicle Inspections must conduct…

Q: Quick answer with accounting question

A: Step 1: Definition of Return on Equity (ROE)Return on equity (ROE) is a measure of a company's…

Q: I want answer

A: To find the required sales level in units, we'll use the following formula:Required Sales = (Fixed…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Absorption Costing Unit Product CostAbsorption costing includes all…

Q: Help with accounting question

A: Step 1: Definition of Rate of Return on Investment (ROI)The Rate of Return on Investment (ROI)…

Q: Carla Vista Company had $212,200 of net income in 2024 when the unit selling price was $151, the…

A: Approach to solving the question: For better clarity of the solution, I have provided the formula…

Q: Colleen Company has gathered the following data pertaining to activities it performed for two of its…

A: Step 1: Cost accounting is a business practice that involves tracking and reporting the costs of a…

Q: Given the solution and accounting question

A: Step 1: Definition of Sales CalculationWe need to determine the sales based on the provided net…

Q: Subject accounting

A: Step 1: Calculation of Price to Earnings (P/E) ratioStep 2: Calculation of Expected Price of Swift…

Q: XYZ Manufacturing has provided the following production and total cost data for two levels of…

A: Step 1: Definition of Fixed Manufacturing CostFixed manufacturing costs are the portion of…

Q: provide correct answer

A: Step 1: Definition of Units of Production (UOP) DepreciationThe Units of Production (UOP)…

Q: How much did they purchase in new fixed assets?

A: Step 1: Definition of Fixed Asset PurchasesFixed asset purchases refer to the acquisition of…

Q: The sales level in units required

A: To attain the targeted profit of $12,500, the enterprise must sell about 5,313 units of the product.…

Q: I don't need ai answer general accounting question

A: Step 1: Definition of Contribution per UnitContribution per unit represents the amount available to…

Q: Horizon Inc. had the following transactions during the month of July 2020: Cash received from a bank…

A: Step 1: Definition of Net IncomeNet income is the total profit a company earns after deducting all…

Q: Total assets cal

A: Question 1: What distinguishes integrated control frameworks from isolated checks?Correct answer: A)…

Q: Crane Company accumulates the following data concerning a mixed cost, using units produced as the…

A: Step 1: Identify the High and Low Activity LevelsHighest units produced: 10,500 (May), Total cost =…

Q: Solve with explanation and accounting question

A: Step 1: Definition of Receivable Turnover and Average Collection PeriodReceivable Turnover is a…

Q: Total equivalent units for materials?

A: Explanation of Process Costing: Process costing is an accounting methodology used in industries with…

Q: The tax savings from an expense item are $90,000 for a company that spends 30% of its income on…

A: Explanation of Tax Savings: Tax savings represent the amount of money a company avoids paying in…

Q: Please provide problem with accounting question

A: Step 1: Definition of Capital Gains YieldThe capital gains yield represents the percentage change in…

Q: What is the cost of goods sold per unit under absorption costing? General accounting question

A: Step 1: Define Absorption CostingAbsorption costing is a costing approach that includes all direct…

Q: I need help with this solution and accounting

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

Q: What is the variable overhead rate variance

A: Explanation of Variable Overhead Rate Variance:The variable overhead rate variance is the difference…

Q: What is row in 2008?

A: ROE CalculationWe are given the financial details of Tikki's Torches, Inc. and need to determine its…

Q: Production during the year?

A: Step 1: Calculate Raw Materials Required for ProductionEach finished unit requires 4 kilos of raw…

Q: Solve Accounting problems

A: Part 1: How does business model evolution affect accounting adaptation?Correct Answer: a) Changing…

Q: Not use ai solution and accounting question

A: Step 1: Definition of Gross Profit Percentage and Return on Sales RatioGross Profit Percentage is…

Q: I need help with this solution and accounting question

A: Step 1: Definition of Cash Collected from CustomersCash collected from customers represents the…

Q: Lexus Corporation has an investment

A: Lexus Corporation is evaluating an investment opportunity with the following financial details:Sales…

Q: Kindly help me with accounting questions

A: Step 1: Definition of Total Variance for PlasticTotal variance for plastic includes both price…

Q: None

A: we use the formula:ROA = (Net Income / Average Total Assets) × 100Given data:Net Income =…

Q: XYZ Services started the year with total assets of $200,000 and total liabilities of $80,000. The…

A: Step 1: Definition of Net IncomeNet Income is the total profit earned by a business after…

Question

100%

The financial statements of SolarTech Industries report
net sales of $1,350,000 and accounts receivable of
$75,000 and $85,000 at the beginning and end of the
year, respectively. What is the average collection period
for accounts receivable in days?

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

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.
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.
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.
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?
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)?
The financial statements of the Sunland Company report net sales of $384000 and accounts receivable of $50400 and $33600 at the beginning of the year and the end of the year, respectively. What is the average collection period for accounts receivable in days?
The financial statements of the Novak Corp. report net sales of $300000 and accounts receivable of $55200 and $27600 at the beginning of the year and the end of the year, respectively. What is the average collection period for accounts receivable in days? (Use 365 days for calculation.)
What is the average collection period for accounts receivable in days on these general accounting question?
The financial statements of Garner Manufacturing report net sales of $600,000 and accounts receivable of $120,000 and $80,000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?
An analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to estimate the company's Accounts Payable. Sales = $93,398Cost of Goods Sold (COGS) = $36,052Cash Cycle = 22 daysOperating Cycle = 86 daysAccounts Receivable Period = AR Period = Average Collection Period (ACP) = 40 daysWhat is the company's Accounts Payable balance?
Abc
Calculate the average collection period in days ?