Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781337517386
Author: WARREN
Publisher: Cengage
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Chapter 6, Problem 6.6.6MBA
To determine
Concept Introduction:
Profit Margin Ratio:
Profit Margin Ratio is a profitability ratio that represents the percentage income earned on the sales. It is calculated by dividing the Net Income by the Sales. The formulas to calculate the Profit margin is as follows:
To Indicate:
The comment on the performance of the company
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Acc
Based on the following data, what is the accounts receivable turnover?
Sales on account during year
Cost of goods sold during year
Accounts receivable, beginning of year
Accounts receivable, end of year
Inventory, beginning of year
Inventory, end of year
Oa. 11.7
Ob. 5.4
Oc. 2.7
C.
Od. 11.9
$590,953
217,271
49,800
50,913
88,221
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Accounts Receivable and Inventory Turnover
The following data (in millions) were adapted from recent financial statements of Apple Inc (AAPL).
Year 2
Year 1
Sales
$233,715
$182,795
Cost of goods sold
140,089
112,258
Operating income
71,230
52,503
Average accounts receivable
33,713
27,816
Average inventory
2,230
1,938
1. Compute the accounts receivable turnover for Years 1 and 2. Round to one decimal place.
Accounts Receivable Turnover
Year 2
fill in the blank
Year 1
fill in the blank
2. Compute the number of days' sales in receivables for Years 1 and 2. Assume there are 365 days in a year, and round to nearest day.
Number of Days' Salesin Receivables
Year 2
___________ days
Year 1
___________ days
3. Compute the inventory turnover for Years 1 and 2. Round to one decimal place.
Inventory Turnover
Year 2
fill in the blank
Year 1
fill in the blank
4. Compute the number of days' sales in inventory for Years 1 and 2. Assume…
Chapter 6 Solutions
Survey of Accounting (Accounting I)
Ch. 6 - At the end of the fiscal year, before the accounts...Ch. 6 - At the end of the fiscal year, Accounts Receivable...Ch. 6 - Prob. 3SEQCh. 6 - The following units of a particular item were...Ch. 6 - Prob. 5SEQCh. 6 - Prob. 1CDQCh. 6 - What types of transactions give rise to accounts...Ch. 6 - In what section of the balance sheet should a note...Ch. 6 - Give two examples of other receivables.Ch. 6 - Carter’s Hardware is a small hardware store in the...
Ch. 6 - Which of the two methods of accounting for...Ch. 6 - Prob. 7CDQCh. 6 - After the accounts are adjusted at the end of the...Ch. 6 - Prob. 9CDQCh. 6 - How are manufacturing inventories different from...Ch. 6 - Prob. 11CDQCh. 6 - Does the term last-in in the LIFO method mean that...Ch. 6 - If inventory is being valued at cost and the price...Ch. 6 - Prob. 14CDQCh. 6 - Prob. 15CDQCh. 6 - Prob. 16CDQCh. 6 - Prob. 17CDQCh. 6 - Prob. 18CDQCh. 6 - Prob. 6.1ECh. 6 - Determine due date and interest on notes Determine...Ch. 6 - Nature of uncollectible accounts MGM Resorts...Ch. 6 - Uncollectible accounts, using direct write-off...Ch. 6 - Uncollectible receivables, using allowance method...Ch. 6 - Writing off accounts receivable Quantum...Ch. 6 - Estimating doubtful accounts Easy Rider...Ch. 6 - Entry for uncollectible accounts Using the data in...Ch. 6 - Providing for doubtful accounts At the end of the...Ch. 6 - Effect of doubtful accounts on net income During...Ch. 6 - Effect of doubtful accounts on net income Using...Ch. 6 - Qualcomm Incorporated (QCOM) is a leading...Ch. 6 - Film costs of DreamWorks DreamWorks Animation SKG...Ch. 6 - Inventory by three methods The units of an item...Ch. 6 - Inventory by three methods; cost of goods sold The...Ch. 6 - Comparing inventory methods Assume that a firm...Ch. 6 - Prob. 6.17ECh. 6 - Lower-of-cost-or-market inventory On the basis of...Ch. 6 - Inventory on the balance sheet Based on thy data...Ch. 6 - Allowance method for doubtful accounts Averys...Ch. 6 - Allowance method for doubtful accounts Averys...Ch. 6 - Allowance method for doubtful accounts Averys...Ch. 6 - Allowance method for doubtful accounts Averys...Ch. 6 - Allowance method for doubtful accounts Averys...Ch. 6 - Allowance method for doubtful accounts Averys...Ch. 6 - Estimate uncollectible accounts For several years....Ch. 6 - Estimate uncollectible accounts For several years....Ch. 6 - Compare two methods of accounting for...Ch. 6 - Compare Two methods of accounting for...Ch. 6 - Inventory by three cost flow methods Details...Ch. 6 - Inventory by three cost flow methods Details...Ch. 6 - Inventory by three cost flow methods Details...Ch. 6 - Inventory by three cost flow methods Details...Ch. 6 - Lower-of-cost-or market inventory Data on the...Ch. 6 - Prob. 6.1MBACh. 6 - Allowance method Using transactions listed in...Ch. 6 - Prob. 6.3MBACh. 6 - Prob. 6.4MBACh. 6 - Lower of cost or market Using data in E6-18,...Ch. 6 - Prob. 6.6.1MBACh. 6 - Prob. 6.6.2MBACh. 6 - Accounts receivable and inventory turnover The...Ch. 6 - Prob. 6.6.4MBACh. 6 - Prob. 6.6.5MBACh. 6 - Prob. 6.6.6MBACh. 6 - Prob. 6.7.1MBACh. 6 - Prob. 6.7.2MBACh. 6 - Prob. 6.7.3MBACh. 6 - Prob. 6.7.4MBACh. 6 - Prob. 6.7.5MBACh. 6 - Prob. 6.7.6MBACh. 6 - Prob. 6.8MBACh. 6 - Prob. 6.9.1MBACh. 6 - Prob. 6.9.2MBACh. 6 - Prob. 6.9.3MBACh. 6 - Prob. 6.9.4MBACh. 6 - Prob. 6.9.5MBACh. 6 - Prob. 6.9.6MBACh. 6 - Prob. 6.10.1MBACh. 6 - Prob. 6.10.2MBACh. 6 - Prob. 6.10.3MBACh. 6 - Prob. 6.10.4MBACh. 6 - Prob. 6.10.5MBACh. 6 - Prob. 6.10.6MBACh. 6 - Prob. 6.1CCh. 6 - Collecting accounts receivable The following is an...Ch. 6 - Ethics and professional conduct in business...Ch. 6 - LIFO and inventory flowInstructions The following...
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- Based on the following data, what is the accounts receivable turnover? Sales on account during year $455,841 Cost of goods sold during year 216,035 Accounts receivable, beginning of year 44,358 Accounts receivable, end of year 48,118 Inventory, beginning of year 87,106 Inventory, end of year 116,902 а. 3.9 Ob. 9.9 С. 2.1 Od. 10.3arrow_forwardBased on the following data, what is the accounts receivable turnover? Sales on account during year $473,995 Cost of goods sold during year 199,972 Accounts receivable, beginning of year 42,169 Accounts receivable, end of year 49,032 Inventory, beginning of year 96,940 Inventory, end of year 110,654 Oa. 10.4 Оb. 2.4 Oc. 4.3 Od. 11.2arrow_forwardBased on the following data, what is the accounts receivable turnover? Line Item Description Amount Sales on account during year $481,916 Cost of goods sold during year 220,075 Accounts receivable, beginning of year 44,464 Accounts receivable, end of year 52,698 Inventory, beginning of year 82,460 Inventory, end of year 110,155 a. 4.4 b. 9.9 c. 2.2 d. 10.8arrow_forward
- Consider the following financial statement data for Flip Sound Systems: Flip Sound System Financial Statement Data Beginning Item Ending Balance Balance Inventory 10,514 12,820 Accounts 6,529 7,657 Receivable Accounts 8,064 10,675 Payable Net Sales 99,391 Cost of Goods 61,523 Sold What is Flip's Operating Cycle? (Round answers to 1 decimal place. Do not round intermediate calculations)arrow_forwardThe following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.arrow_forwardInventory Analysis Singleton Inc. reported the following information for the current year: Required: Compute Singletons (a) gross profit ratio, (b) inventory turnover ratio, and (c) average days to sell inventory. (Note: Round all answers to two decimal places.)arrow_forward
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