(a) | Accounts Receivable turnover :- | 2018 | ||||
a. | Net Credit Sales | $ 2,400,000 | ||||
b. | Average Accounts Receivable | |||||
opening + closing | 460000+560000 | = | $ 510,000 | |||
2 | 2 | |||||
Accounts Receivable turnover Ratio (a/b) | 4.71 | times | ||||
(b) | Inventory turnover:- | 2018 | ||||
a. | Cost of goods sold | $ 1,800,000 | ||||
b. | Average Inventory | |||||
opening + closing | 400000+500000 | = | $ 450,000 | |||
2 | 2 | |||||
Inventory turnover Ratio (a/b) | 4.00 | times | ||||
(c) | Net margin for 2017:- | 2017 | ||||
a. | Net Sales | $ 2,400,000 | ||||
b. | Total Operating Expenses | $ 1,810,000 | ||||
c. | Net Margin (a-b) | $ 590,000 | ||||
Net margin Ratio (c/a)*100 | 24.58% |
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Selected data from Emporia Company follow Balance Sheets As of December 31 2017 2018 $600,000 (40,000)...
Selected data of Islander Company follow: Balance Sheet Data Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories-lower of cost or market As of December 31, 2017 2016 $500,000 $470,000 (25,000) (20,000) 475,000 450,000 600,000 550,000 Income Statement Data Net credit sales Net cash sales Net sales Cost of goods sold Selling, general, and administrative expenses Other Total operating expenses Year Ended December 31, 2017 2016 $2,500,000 $2,200,000 500,000 400,000 3,000,000 2,600,000 2,000,000 1,800,000 300,000 270,000 50,000 30,000 2,350,000...
Selected data from Franklin Company follow: Balance Sheets As of December 31 2018 2017 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market $404,000 $379,000 (20,200)(15,160) $383,800 $363,840 $476,000 $435,000 Income Statement For the Years Ended December 31 2018 2017 Net credit sales Net cash sales Net sales $2,007,000 $1,752,000 415,000 309,00 Cost of goods sold Selling, general, and administrative expenses Other expenses 2,422,000 1,606,000 2,061,000 1,432,000 214,600 239,900 40,80022,500 Total operating expenses $1,886,700...
The financial statements of Green Corporation appear below: Green Corporation Comparative Balance Sheets December 31, 2018 - 19 —————————————————————————————————— Assets 2019 2018 Cash $150,000 $ 300,000 Short-term investments 150,000 450,000 Accounts receivable (net) 300,000 225,000 Inventory 450,000 525,000 Property, plant and equipment (net) 1,950,000 2,250,000 Total assets $3,000,000 $3,750,000 Liabilities and stockholders' equity Accounts payable $150,000 $ 225,000 Short-term notes payable 300,000 675,000 Bonds payable 600,000 1,200,000 Common stock 1,125,000 1,125,000 Retained earnings 825,000 525,000 Total liabilities and stockholders' equity ...
Required
Compute the accounts receivable turnover for 2018.
Compute the inventory turnover for 2018.
Compute the net margin for 2017.
Selected data from Rooney Company follow: Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market 2018 $407,000 (20,350) $386,650 $478,000 2017 $375,000 (15,000) $360,000 $445,000 Income Statement For the Years Ended December 31 2018 Net credit sales $2,018,000 Net cash sales 410,000 Net sales 2,428,000 Cost of goods...
Simon Company’s year-end balance sheets follow.
At December 31
2017
2016
2015
Assets
Cash
$
27,904
$
32,617
$
34,676
Accounts receivable, net
89,700
62,600
59,700
Merchandise inventory
113,000
83,000
54,000
Prepaid expenses
8,986
8,562
3,853
Plant assets, net
247,981
233,541
208,871
Total assets
$
487,571
$
420,320
$
361,100
Liabilities and Equity
Accounts payable
$
117,763
$
68,903
$
46,235
Long-term notes payable secured by
mortgages on plant assets
88,913
93,773
77,409
Common stock, $10 par value
162,500
162,500...
Financial statements for Benson Company follow. BENSON COMPANY Balance Sheets As of December 31 2019 2018 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories 17,500 13,500 20,300 44,00036,090 129,000 137,0e0 28,00890 6,300 Prepaid items Total current assets 26,966 13,000 238,800 205,800 27,00020,880 270,000 255,0ee 29,888 Investments Plant (net) Land 24,800 Total assets $564,800 $504,800 Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable 17,200 8,500 88,800 75,00 24,00010 18,000 130,000 101,580 Total current liabilities...
The following financial information is for Ivanhoe Company. IVANHOE COMPANY Balance Sheets December 31 Assets 2017 2016 Cash $ 71,000 $66,000 Debt investments (short-term) Accounts receivable 52,000 110,000 233.000 25,000 40,000 91,000 165,000 27,000 Inventory Prepaid expenses Land 130,000 130,000 Building and equipment (net) 259.000 184,000 Total assets $880,000 $703,000 Liabilities and Stockholders' Equity Notes payable $171,000 $110,000 Accounts payable 68,000 53,000 Accrued liabilities Bonds payable, due 2017 39,000 249,000 207,000 146,000 39,000 169,000 207,000 125,000 Common stock, $10 par...
The following financial information is for Pharoah
Company.
PHAROAH COMPANY
Balance Sheets
December 31
Assets
2017
2016
Cash
$ 72,000
$ 69,000
Debt investments (short-term)
54,000
39,000
Accounts receivable
107,000
90,000
Inventory
236,000
162,000
Prepaid expenses
30,000
27,000
Land
133,000
133,000
Building and equipment (net)
260,000
188,000
Total assets
$892,000
$708,000
Liabilities and Stockholders’ Equity
Notes payable
$170,000
$106,000
Accounts payable
65,000
54,000
Accrued liabilities
42,000
42,000
Bonds payable, due 2020
250,000
171,000
Common stock, $10 par
209,000
209,000
Retained...
Financial statements for Franklin Company follow. FRANKLIN COMPANY Balance Sheets As of December 31 2019 2018 Assets Current assets Cash $ 19,500 $ 15,500 Marketable securities 20,700 6,700 Accounts receivable (net) 48,000 40,000 Inventories 133,000 141,000 Prepaid items 27,000 12,000 Total current assets 248,200 215,200 Investments 22,000 15,000 Plant (net) 290,000 275,000 Land 33,000 28,000 Total assets $ 593,200 $ 533,200 Liabilities and Stockholders’ Equity Liabilities Current liabilities Notes payable $ 31,200 $ 18,200 Accounts payable 133,800 120,000 Salaries payable...
Exercise 14-7 Frizell Company has the following comparative balance sheet data. FRIZELL COMPANY Balance Sheets December 31 2017 2016 Cash $15,100 29,700 Accounts receivable (net) 70,300 59,000 Inventory 60,900 49,300 Plant assets (net) 195,000 178,500 $341,300 $316,500 Accounts payable $50,600 $60,900 Mortgage payable (6%) Common stock, $10 par 101,500 101,500 144,000 118,500 Retained earnings 45,200 35,600 $341,300 $316,500 Additional information for 2017 Net income was $25,800. 1 Sales on account were $407,000. Sales returns and allowances were $20,700. 2. Cost...