The following financial information is for Austin Corporation for the fiscal years ending 2022 and 2021 (all balances are normal): Item/Account 2022 2021 Accounts Receivable $10,500 $9,900. Inventory 27,000 18,000 Net Sales (all credit) $85,000 $76,000 Cost of Goods Sold $52,000 $55,000 $8,000 $7,300 Net Income Use this information to determine the following for FY 2022 (Round to one decimal place): (Assume a 365-day year) 1. Accounts Receivable Turnover Ratio 2. Average Collection Period (in days) 3. Gross Profit Margin 4. Profit Margin

The following financial information is for Austin Corporation for the fiscal years ending 2022 and 2021 (all balances are normal): Item/Account 2022 2021 Accounts Receivable $10,500 $9,900. Inventory 27,000 18,000 Net Sales (all credit) $85,000 $76,000 Cost of Goods Sold $52,000 $55,000 $8,000 $7,300 Net Income Use this information to determine the following for FY 2022 (Round to one decimal place): (Assume a 365-day year) 1. Accounts Receivable Turnover Ratio 2. Average Collection Period (in days) 3. Gross Profit Margin 4. Profit Margin

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 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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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 financial information is for Annapolis Corporation for the fiscal years ending 2018 and 2019 (all balances are normal): Cost of Accounts Net Sales Net Item/Account Inventory Goods Receivable (all credit) Income Sold 2019 2018 $44,000 $42,000 $410,000 $154,000 $27,200 $34,000 $38,000 $350,000 $152,000 $24,800 Use this information to determine the accounts receivable average collection period for FY 2019. (Use 365 days a year. Round your answers to one decimal place.)
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