You have collected the following information for the Charger co. You have collected the following information for theCharger Co.:ItemBeginning EndingInventory$5,000 $7,000Accts. Receivable 1,6002,400Accts. Payable2,7004,800Credit sales for the year just ended were $50,000, andthe cost of goods sold was $30,000.a. How long does it take for Charger to collect on itsreceivables?b. How long does merchandise stay around before it issold?c. How long does it take Charger to pay its bills?d. What is Charger's operating cycle?

Step 1: Define Operating CycleThe number of days that elapse between the purchase of raw materials…

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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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A seller of goods had the following details of sales and collection during the month: Receivables, beginning P 200,000.00 Gross sales 400,000.00 Less: Collection 500,000.00 Receivables, end P 100,000.00 1. What is the amount subject to business tax? a. P500,000 b. P400,000 c. P300,000 d. P200,000 2. In the immediately preceding problem, determine the amount subject to business tax if the taxpayer is a seller of services. a. P500,000 b. P400,000 c. P300,000 d. P200,000
During the current year, merchandise is sold for $366, 100 cash and $1,420,000 on account. The cost of the merchandise sold is $1,014,300. what is the amount of the gros profit?
Use the following information to answer the question that follow:Net Income : $205,000Profit margin : 7.80%A/R : $151,642Credit sales : 60% of total sales Compute the days’ sales in receivables
. My New Business uses percentage of sales to determine the value for allowance for doubtful accounts. If sales were $275,000, and the estimate is 2% of sales, what is the journal entry to record this. What if there was a $750 debit balance in the account? A $750 credit balance in the account?
Receiveables: A company has accounts recieveable of $6,333. Sales for the year were $9,800 . What is its average collection period? Show & expalin the work.
ABC Industries has accounts receivable of $700, inventory of $1,200, sales of $4,200, and cost of goods sold of $3,500. How long does it take ABC to both sell its inventory and then collect the payment on the sale? 125 days 145 days 210 days 110 days 131 days
At January 1, the total of the purchases ledger accounts was $38,000, while at December 31 it was $43,000. During the year the firm paid out $83,000 to credit suppliers, while enjoying discounts of $8,800. How much was purchased on credit during the year ? Select one : A.$88,000 B.$96,000 C.$82,600 D.$97,000 Clear explanation of answer needed
The following information relates to ReDo Corporation: $28,184,000 $316,199,000 $64,115,000 What ReDo's receivables collection period (DSO)? In your computations, assume there are 360 days in a year. 42.50 days O 72.99 days 32.09days Accounts receivable Total credit sales Accounts payable O 11.22days
During the current year, merchandise is sold for $450,000 cash and $1,350,000 on account. The cost of the merchandise sold is $1,100,000. What is the amount of the gross profit?
Tripod Company makes all sales on account. During the current year, Tripod has an average accounts receivable balance of $60,000, an average inventory balance of $96,000, cost of goods sold of $345,000, and net income of $117.000. If Tripod's gross margin percentage is 42.5%, what was its average collection period? Round to one decimal point. O 18.3 days O 24.3 days O 30.4 days O 36.5 days O None of the above
For its most recent year a company had Sales (all on credit) of OMR 830000 and Cost of Goods Sold of OMR 525000. At the beginning of the year its Accounts Receivable were OMR 80000 and its Inventory was OMR 100000. At the end of the year its Accounts Receivable were OMR 86000 and its Inventory was OMR 110000. Calculate Receivable days. Select one: a. 37 Days b. 58 Days c. 46 Days d. 73 Days
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