Accounts receivable turnover Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period. Average collection period: Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average. To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

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Answer 1

Question

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

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Coronado Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000+10,200)]. Estimated annual manufacturing overhead is $1,566,090. Thus, the predetermined overhead rate is $16.26 or ($1,566,090 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…

Coronado Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000+ 10,200)]. Estimated annual manufacturing overhead is $1,566,090. Thus, the predetermined overhead rate is $16.26 or ($1,566,090 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…

Answer 2

Question

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

Answer 6

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

Answer 7

Chapter 8, Problem 8.2EYCT

(a) (1)

To determine

Accounts receivable turnover

Accounts receivable turnover is a liquidity measure of accounts receivable in times, which is calculated by dividing the net credit sales by the average amount of net accounts receivables. In simple, it indicates the number of times the average amount of net accounts receivables, collected during a particular period.

Average collection period:

Average collection period indicates the number of days taken by a business to collect its outstanding amount of accounts receivable on an average.

To calculate: The accounts receivable turnover of Company CS and Corporation VF for 2014.

Answer 8

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

Answer 9

(a) (2)

To determine

To calculate: The average collection period of Company CS, and Corporation VF for 2014.

Answer 10

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

Answer 11

(b)

To determine

To conclude: The Efficiency of management in handling accounts receivable.

Answer 12

Expert Solution & Answer

Answer 13

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Answer 14

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Answer 15

Ch. 8 - What is the difference between an account...Ch. 8 - What are some common types of receivables other...Ch. 8 - What are the essential features of the allowance...Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - Prob. 6Q Ch. 8 - Prob. 7Q Ch. 8 - Tawnya Dobbs, the vice president of sales for...Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

Solution Summary: The author calculates the accounts receivable turnover ratio of Company CS and Corporation VF.

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To calculate: The average collection period of Company CS, and Corporation VF for 2014.

To conclude: The Efficiency of management in handling accounts receivable.

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