Compute the accounts receivable turnover for Company N and Company A for Year 1 and Year 2.

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Answer 1

Question

Chapter 4, Problem 18PC

a.

To determine

Compute the accounts receivable turnover for Company N and Company A for Year 1 and Year 2.

b.

To determine

Explain the reason for the differences in the accounts receivable turnover ratio between the two firms.

c.

To determine

Explain the reason for the trend in the accounts receivable turnover of these two firms during the two-year period.

d.

To determine

Compute the inventory turnover for Company N and Company A for these two years.

e.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

f.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

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General Finance Question

Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes): Income Statement Balance Sheet Sales Costs $ 40,000 Assets 34,160 $26,000 Debt Equity $ 7,000 19,000 Net income $ 5,840 Total $26,000 Total $26,000 The company has predicted a sales increase of 20 percent. Assume Yoo pays out half of net income in the form of a cash dividend. Costs and assets vary with sales, but debt and equity do not. Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to the nearest whole dollar amount.) Pro forma income statement Sales Costs $ 48000 40992 Assets $ 31200 Pro forma balance sheet Debt 7000 Equity 19000 Net income $ 7008 Total $ 31200 Total 30304 What is the external financing needed? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.) External financing needed $ 896

Answer 2

Question

Chapter 4, Problem 18PC

a.

To determine

Compute the accounts receivable turnover for Company N and Company A for Year 1 and Year 2.

b.

To determine

Explain the reason for the differences in the accounts receivable turnover ratio between the two firms.

c.

To determine

Explain the reason for the trend in the accounts receivable turnover of these two firms during the two-year period.

d.

To determine

Compute the inventory turnover for Company N and Company A for these two years.

e.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

f.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

Expert Solution & Answer

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Answer 3

Question

Chapter 4, Problem 18PC

a.

To determine

Compute the accounts receivable turnover for Company N and Company A for Year 1 and Year 2.

b.

To determine

Explain the reason for the differences in the accounts receivable turnover ratio between the two firms.

c.

To determine

Explain the reason for the trend in the accounts receivable turnover of these two firms during the two-year period.

d.

To determine

Compute the inventory turnover for Company N and Company A for these two years.

e.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

f.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 18PC

a.

To determine

Compute the accounts receivable turnover for Company N and Company A for Year 1 and Year 2.

b.

To determine

Explain the reason for the differences in the accounts receivable turnover ratio between the two firms.

c.

To determine

Explain the reason for the trend in the accounts receivable turnover of these two firms during the two-year period.

d.

To determine

Compute the inventory turnover for Company N and Company A for these two years.

e.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

f.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 18PC

a.

To determine

Compute the accounts receivable turnover for Company N and Company A for Year 1 and Year 2.

b.

To determine

Explain the reason for the differences in the accounts receivable turnover ratio between the two firms.

c.

To determine

Explain the reason for the trend in the accounts receivable turnover of these two firms during the two-year period.

d.

To determine

Compute the inventory turnover for Company N and Company A for these two years.

e.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

f.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

Answer 6

Chapter 4, Problem 18PC

a.

To determine

Compute the accounts receivable turnover for Company N and Company A for Year 1 and Year 2.

Answer 7

Chapter 4, Problem 18PC

a.

To determine

Compute the accounts receivable turnover for Company N and Company A for Year 1 and Year 2.

Answer 8

b.

To determine

Explain the reason for the differences in the accounts receivable turnover ratio between the two firms.

Answer 9

b.

To determine

Explain the reason for the differences in the accounts receivable turnover ratio between the two firms.

Answer 10

c.

To determine

Explain the reason for the trend in the accounts receivable turnover of these two firms during the two-year period.

Answer 11

c.

To determine

Explain the reason for the trend in the accounts receivable turnover of these two firms during the two-year period.

Answer 12

d.

To determine

Compute the inventory turnover for Company N and Company A for these two years.

Answer 13

d.

To determine

Compute the inventory turnover for Company N and Company A for these two years.

Answer 14

e.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

Answer 15

e.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

Answer 16

f.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

Answer 17

f.

To determine

Explain the reasons for the difference in the inventory turnover of the two firms.

Answer 18

Expert Solution & Answer

Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

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Compute the accounts receivable turnover for Company N and Company A for Year 1 and Year 2.

Solution Summary: The author explains the differences in the accounts receivable turnover ratio between the two firms.

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Compute the accounts receivable turnover for Company N and Company A for Year 1 and Year 2.

Explain the reason for the differences in the accounts receivable turnover ratio between the two firms.

Explain the reason for the trend in the accounts receivable turnover of these two firms during the two-year period.

Compute the inventory turnover for Company N and Company A for these two years.

Explain the reasons for the difference in the inventory turnover of the two firms.

Explain the reasons for the difference in the inventory turnover of the two firms.

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Chapter 4 Solutions