Use the following information for Transylvania Railroad:Long-term debt ratio: 0.5• Times-interest-earned: 8.0Current ratio: 1.5• Quick ratio: 1.0⚫ Cash ratio: 0.3• Inventory turnover: 4.9• Receivables collection period: 73.0 days• Tax rate = 0.40Work out the missing entries. For this problem, use the following definitions:Inventory turnover = COGS ÷ average inventoryReceivables collection period = average receivables (sales + 365).Complete this question by entering your answers in the tabs below.Balance SheetIncomeStatementWork out the missing entries.Note: Enter your answers in millions. Do not round intermediate calculations. Round your answers to 2 decimal places.Balance Sheet($ in millions)December 2020December 2019Cash21.00Accounts receivable34.10Inventory27.50Total current assets82.60Fixed assets (net)111.00Total193.60Notes payable31.0020.10Accounts payable26.0015.10Total current liabilities35.20Long-term debt37.90Equity120.50Total236.00193.60

Step 1: Determine Total Current AssetsFor December 2019:Cash: 21.00 millionAccounts Receivable:…

Answered: Use the following information for…

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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If the ending inventory of a firm is overstated by $56,000, by how much and in what direction (overstated or understated) will the firm's operating income be misstated? (Hint: Use the cost of goods sold model, enter hypothetically "correct" data, and then reflect the effects of the ending inventory error and determine the effect on cost of goods sold.) Operating income by
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exh Inventory Inventory Cost per Market Value per Unit Item Quantity Unit (Net Realizable Value) Birch 28 $82 $68 Cypress 8 137 128 Mountain Ash 48 106 102 Spruce 10 135 155 Willow 18 80 93 Inventory at the Lower of Cost or Market Inventory Item Total Cost Total Market Total Lower of C or M Birch Cypress Mountain Ash Spruce Willow Total
Please help me evaluate these financial ratios to identify any trends or issues and potential reasons for them. Could Covid have played a role? Please help me interpret the ratios in Group B from managements perspective from period 12/31/19 & 6/30/20
Companies can use various methods to determine the cost of inventory, including FIFO, LIFO, and average cost. In a period in which the cost of inventory is rising, which of the following statements is true? The LIFO method will result in the lowest income tax expense. The LIFO method will result in the highest inventory balance at year-end. The average cost method will result in the highest net income. The LIFO method will result in the lowest cost of goods sold. The average cost method will result in the lowest inventory balance at year-end. The average cost method will result in the highest inventory balance at year-end. The FIFO method will result in the lowest net income. None of the listed choices are correct.
1
I computed 72,540 but is checked wrong why?
Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory (in $) and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory necessary to come up to industry standards. If the actual turnover is greater than the published rate, enter "above" for target average inventory. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth Net Sales $560,000 Cost of Goods Sold Beginning Ending Inventory Inventory $137,250 $75,200 $ Average Inventory Inventory Turnover Published Rate 4.8 $ Target Average Inventory

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