Anderson's supploers extend credit to the frim on terms of "net
30." Anderson normally pays its bills on the last day of the dredit
period. How much additional financing could be generated if
Anderson were to stretch its payables 10 days beyond due
date?
Answer:
Current credit period given by suppliers = 30 days
We observe from Anderson's balance sheet:
Accounts Payable = $3,000,000
Hence:
If Anderson were to stretch its payable 10 days beyond due date, new average payable period = 30 + 10 = 40
New average accounts payable = 3,000,000/ 30 * 40 = $4,000,000
Additional financing that could be generated = 4000000 - 3000000 = $1,000,000
Additional financing could be generated if Anderson were to stretch its payable by 10 days = $1,000,000
Anderson's supploers extend credit to the frim on terms of "net 30." Anderson normally pays its...
Prepare a pro forma income statment for 2016. Assume that the
sales increase to $87 million as a result of the plant expansion.
Also assume that the cost of sales and selling and administrative
expense rations (as a percentage of sales) remian constant.
Finally, assume that interest expense and the firm's tax rate
remain the same in 2016.
TABLE 160.1 Anderson Furniture Company's Financi urniture Company's Financial Data (in Thousands of Dollars) Industry Average Balance Sheet as of December 31,...
The 2021 income statement of Anderson Medical Supply Company reported net sales of $10 million, cost of goods sold of $6.6 million, and net income of $890,000. The following table shows the company's comparative balance sheets for 2021 E and 2020: ($ in thousands) 2021 2020 $ 660 1,060 1,300 4,200 $ 7,220 $ 740 680 1,210 3,920 $ 6,550 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable...
The 2021 income statement of Anderson Medical Supply Company
reported net sales of $11 million, cost of goods sold of $5.7
million, and net income of $845,000. The following table shows the
company's comparative balance sheets for 2021 and 2020:
The 2021 income statement of Anderson Medical Supply Company reported net sales of $11 million, cost of goods sold of $5.7 million, and net income of $845,000. The following table shows the company's comparative balance sheets for 2021 and 2020:...
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The 2018 income statement of Anderson Medical Supply Company reported net sales of $10 million, cost of goods sold of $5.6 million, and net income of $840,000. The following table shows the company's comparative balance sheets for 2018 and 2017: 0182017 $460 540 Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) 860 1,300 1,100 3,2002,920 $5,820 $5,140 Total assets Liabilities and shareholders equity Current liabilities Bonds payable Paid-in capital Retained earnings $1,120 990 1,600 1,600 1,800 1,800 1...
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The 2021 income statement of Anderson Medical Supply Company reported net sales of $10 million, cost of goods sold of $6.0 million, and net income of $860,000. The following table shows the company's comparative balance sheets for 2021 and 2020: ($ in thousands) 2021 2020 Assets Cash $ 540 $ 620 Accounts receivable 940 620 Inventory 1,500 910 Property, plant, and equipment (net) 3,600 3,320 Total assets $6,580 $5,470 Liabilities and shareholders' equity Current liabilities $1,280 $1,070 Bonds payable 1,800...
The 2021 income statement of Anderson Medical Supply Company reported net sales of $12 million, cost of goods sold of $6.2 million, and net income of $870,000. The following table shows the company's comparative balance sheets for 2021 and 2020: (5 in 2021 2020 Assets $ 580 1,600 BBCO $6,960 60 540 1,010 2920 55,830 McCounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and...
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