General Accounting Though his sales are increasing from year to year, Hugh G. Losses, President of USSEnterprises, is concerned because his competitors are stealing some of his prime customers.Puzzled by these developments, he has hired you to analyze his financials. He has given to youthe following key financial items from his annual statements:(all values in $)Net SalesCOGS2015298,000 256,000 213,000 165,000 135,000125,000 108,000 89,000 69,000 57,0002014 2013 2012 2011Ending Gross Receivables 26,000 26,000 25,000 25,000 23,000Ending InventoryTotal Current Assets24,000 18,000 12,000 8,000 4,00052,000 46,000 39,000 37,000 32,000Total Current Liabilities 24,000 23,000 22,000 21,000 18,000Calculate the Days Sales in Receivables (DSR) for USS Enterprises for 2015. Show yourcalculations.

Step 1: Define Average Collection PeriodThe time period within which the credit sales are converted…

Answered: Though his sales are increasing from…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 20P

See similar textbooks

Similar questions

If you give me wrong answer I will give you unhelpful rate on these general accounting question
Saturn Computer is considering to expand, but before that, the management wants to know the financial position of the company compared to that of the industry. Data for Saturn Computer Co. and its industry averages follow. Items Amount ($) Items Amounts ($) Cash 87,500 Accounts Payable 110,000 Total Operating Expense 123,000 Interest Expense 26,500 Income Tax 18,200 Total Sales 1,607,500 Net Fixed Assets 292,500 Long-term Bank Loan 246,500 Cost of Goods Sold 1,352,500 Common Stock Equity 361,000 Inventories 211,500 Other Current Liabilities 84,000 Accounts Receivables 336,000 Notes Payable (Maturity within 1 year) 107,000 Total Operating Profit 110,000 Net Profit after tax 88,300…
Hi, Please the attached file for the my question.
In an effort to analyze Clockwork Company finances, Jim realized that he was missing the company's net profits after taxes for the current year. Find the company's net profits after taxes using the following information Return on equity = 10.5% Debt ratio = 35% Total Asset Turnover = 2 Cost of Goods Sold = R110,000 Gross Profit Margin = 0.35 Sales = 161538.46
None
suppose you are an auditor of a large multinational company. You notice that there have been large fluctuations in this company's PPE for the past five years, as follows: 2016: PPE is $150 million 2017: PPE is $320 million 2018: PPE is $175 million 2019: PPE is $100 million 2020: PPE is $250 million Please describe some concerns that you might have for the company. In a response post, now pretend you are the CEO of the multinational company. Please address the concerns raised in another student's initial post, and provide some reasons for the large fluctuations in PPE that would not alarm your auditor and investors.
Your consulting firm was recently hired to improve the performance of ABC Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to analyze the firm's cash cycle. Using the following information and a 365-day year, what is the firm’s operating cycle? Average inventory = $75,000 Annual sales = $875,000 Annual cost of goods sold = $525,000 Average accounts receivable = $160,000 Average accounts payable = $25,000
This is an example prioblem. I need help understanding the math that is being done?
Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Uptons balance sheet as of December 31, 2019, is shown here (millions of dollars): Sales for 2019 were 350 million, and net income for the year was 10.5 million, so the firms profit margin was 3.0%. Upton paid dividends of 4.2 million to common stockholders, so its payout ratio was 40%. Its tax rate was 25%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2020. a. If sales are projected to increase by 70 million, or 20%, during 2020, use the AFN equation to determine Uptons projected external capital requirements. b. Using the AFN equation, determine Uptons self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? c. Use the forecasted financial statement method to forecast Uptons balance sheet for December 31, 2020. Assume that all additional external capital is raised as a line of credit at the end of the year. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Assume Uptons profit margin and dividend payout ratio will be the same in 2020 as they were in 2019. What is the amount of the line of credit reported on the 2020 forecasted balance sheets? (Hint: You dont need to forecast the income statements because the line of credit is taken out on the last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2020 addition to retained earnings for the balance sheet without actually constructing a full income statement.)
Philip Spencer, the owner of Wholesome Foods, has hired you to evaluate his firm's financial performance. The firm's financial data is provided below, along with an average for the financial ratios that Spencer collected on several competing peer firms. Assets 2016 2017 2018 $ 21,000 $ 20,200 $ 25,000 Cash Accounts receivable 42,000 33,000 46,000 51,000 1.200 $ 115,200 650,000 (364,000) $ 286,000 $ 401,200 84,000 1,100 $ 138,300 664,000 (394,000) $ 270,000 $ 408,300 Inventory Prepaid rent 96,000 2,000 $ 169,000 740,000 (434,000| $ 306,000 $ 475,000 Total current assets Gross property, plant, and equipment Accumulated depreciation Net property, plant, and equipment TOTAL ASSETS Debt (Liabilities) and Equity Accounts payable 2016 $ 48,000 9,500 2017 2018 $ 52,400 12,000 $ 57,000 Accrued expenses 9,000 11.500 S 69,000 $ 160,000 $ 22,200 Short-term notes 9,000 $ 75,000 $ 150,000 $ 22,200 20,000 $ 84,400 $ 185,000 $ 34,500 Total current liabilities Long-tem debt Common stock Retained…
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex CompanyComparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 960,000 $ 1,260,000 Marketable securities 0 300,000 Accounts receivable, net 2,700,000 1,800,000 Inventory 3,900,000 2,400,000 Prepaid expenses 240,000 180,000 Total current assets 7,800,000 5,940,000 Plant and equipment, net 9,300,000 8,940,000 Total assets $ 17,100,000 $ 14,880,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 3,900,000 $ 2,760,000 Note payable, 10% 3,600,000 3,000,000 Total liabilities 7,500,000 5,760,000 Stockholders' equity: Common stock, $78 par value…
The following information pertains to Striker Corporation, together with its DSO/ACP of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO/ACP to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365-day year. Sales=P110,000; Accounts receivable= P16,000; Days sales outstanding (DSO/ACP)= 53.09; Benchmark days sales outstanding (DSO/ACP)=20.00 * P 8,078 O P 8,975 P 9,973 P10,970 P12,067

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Financial Accounting

Accounting

ISBN:

9781337272124

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS