(a) Accounts Receivable Turnover Ratio: The accounts receivable turnover ratio is a ratio which helps in measuring the process of collection of receivables of a business as faster the process, better the liquidity of the business. This ratio shows the policy of the company and its effectiveness against the credit sales of the company. To calculate: The accounts receivable turnover ratio.

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Answer 1

Question

Chapter 5, Problem 57BE

To determine

(a)

Accounts Receivable Turnover Ratio:

The accounts receivable turnover ratio is a ratio which helps in measuring the process of collection of receivables of a business as faster the process, better the liquidity of the business. This ratio shows the policy of the company and its effectiveness against the credit sales of the company.

To calculate:

The accounts receivable turnover ratio.

To determine

(b)

Net Profit Margin Ratio:

The net margin ratio is a type of profitability ratio which is used to measure the returns and earning after all expenses i.e. net earnings and compute the ratio in respect to the sales of the business.

To calculate:

The net profit margin ratio.

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Fallon Manufacturing Company measures its activity in terms of machine hours. Last month, the budgeted level of activity was 2,300 machine hours and the actual level of activity was 2,450 machine hours. The cost formula for maintenance expenses is $4.25 per machine hour plus $18,500 per month. The actual maintenance expense was $29,600. Last month, the spending variance for maintenance expenses was _.

Please explain the solution to this general accounting problem with accurate principles.

Answer 2

Question

Chapter 5, Problem 57BE

To determine

(a)

Accounts Receivable Turnover Ratio:

The accounts receivable turnover ratio is a ratio which helps in measuring the process of collection of receivables of a business as faster the process, better the liquidity of the business. This ratio shows the policy of the company and its effectiveness against the credit sales of the company.

To calculate:

The accounts receivable turnover ratio.

To determine

(b)

Net Profit Margin Ratio:

The net margin ratio is a type of profitability ratio which is used to measure the returns and earning after all expenses i.e. net earnings and compute the ratio in respect to the sales of the business.

To calculate:

The net profit margin ratio.

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Answer 3

Question

Chapter 5, Problem 57BE

To determine

(a)

Accounts Receivable Turnover Ratio:

The accounts receivable turnover ratio is a ratio which helps in measuring the process of collection of receivables of a business as faster the process, better the liquidity of the business. This ratio shows the policy of the company and its effectiveness against the credit sales of the company.

To calculate:

The accounts receivable turnover ratio.

To determine

(b)

Net Profit Margin Ratio:

The net margin ratio is a type of profitability ratio which is used to measure the returns and earning after all expenses i.e. net earnings and compute the ratio in respect to the sales of the business.

To calculate:

The net profit margin ratio.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 57BE

To determine

(a)

Accounts Receivable Turnover Ratio:

The accounts receivable turnover ratio is a ratio which helps in measuring the process of collection of receivables of a business as faster the process, better the liquidity of the business. This ratio shows the policy of the company and its effectiveness against the credit sales of the company.

To calculate:

The accounts receivable turnover ratio.

To determine

(b)

Net Profit Margin Ratio:

The net margin ratio is a type of profitability ratio which is used to measure the returns and earning after all expenses i.e. net earnings and compute the ratio in respect to the sales of the business.

To calculate:

The net profit margin ratio.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 57BE

To determine

(a)

Accounts Receivable Turnover Ratio:

The accounts receivable turnover ratio is a ratio which helps in measuring the process of collection of receivables of a business as faster the process, better the liquidity of the business. This ratio shows the policy of the company and its effectiveness against the credit sales of the company.

To calculate:

The accounts receivable turnover ratio.

To determine

(b)

Net Profit Margin Ratio:

The net margin ratio is a type of profitability ratio which is used to measure the returns and earning after all expenses i.e. net earnings and compute the ratio in respect to the sales of the business.

To calculate:

The net profit margin ratio.

Answer 6

Chapter 5, Problem 57BE

To determine

(a)

Accounts Receivable Turnover Ratio:

The accounts receivable turnover ratio is a ratio which helps in measuring the process of collection of receivables of a business as faster the process, better the liquidity of the business. This ratio shows the policy of the company and its effectiveness against the credit sales of the company.

To calculate:

The accounts receivable turnover ratio.

Answer 7

Chapter 5, Problem 57BE

To determine

(a)

Accounts Receivable Turnover Ratio:

The accounts receivable turnover ratio is a ratio which helps in measuring the process of collection of receivables of a business as faster the process, better the liquidity of the business. This ratio shows the policy of the company and its effectiveness against the credit sales of the company.

To calculate:

The accounts receivable turnover ratio.

Answer 8

To determine

(b)

Net Profit Margin Ratio:

The net margin ratio is a type of profitability ratio which is used to measure the returns and earning after all expenses i.e. net earnings and compute the ratio in respect to the sales of the business.

To calculate:

The net profit margin ratio.

Answer 9

To determine

(b)

Net Profit Margin Ratio:

The net margin ratio is a type of profitability ratio which is used to measure the returns and earning after all expenses i.e. net earnings and compute the ratio in respect to the sales of the business.

To calculate:

The net profit margin ratio.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 5 - When is revenue recognized?Ch. 5 - When is a performance obligation satisfied?Ch. 5 - At what amount should sales revenue be recorded...Ch. 5 - Prob. 4DQ Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 9DQ Ch. 5 - Why is the direct write-off method not GAAP?

Solution Summary: The author explains the accounts receivable turnover ratio and the net profit margin ratio.

(b)

Net Profit Margin Ratio:

The net margin ratio is a type of profitability ratio which is used to measure the returns and earning after all expenses i.e. net earnings and compute the ratio in respect to the sales of the business.

To calculate:

The net profit margin ratio.

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Chapter 5 Solutions

Solution Summary: The author explains the accounts receivable turnover ratio and the net profit margin ratio.

(b) Net Profit Margin Ratio: The net margin ratio is a type of profitability ratio which is used to measure the returns and earning after all expenses i.e. net earnings and compute the ratio in respect to the sales of the business. To calculate: The net profit margin ratio.

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Chapter 5 Solutions

(b)

Net Profit Margin Ratio:

The net margin ratio is a type of profitability ratio which is used to measure the returns and earning after all expenses i.e. net earnings and compute the ratio in respect to the sales of the business.

To calculate:

The net profit margin ratio.