Homework Answers
Receivable turnover ratio = Net credit sales / Average Net accounts receivable
= 62801000/(4634000+6015000)/2
= 11.79 times
Average days sales in collection = 365/ Receivable turnover ratio
= 365 / 11.79
= 30.96 days
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Check my w E6-25 (Algo) Computing and Interpreting the Receivables Turnover Ratio L06-3 A recent annual...
E6-24 Computing and Interpreting the Receivables Turnover Ratio A recent annual report for FedEx contained the...
E6-24 Computing and Interpreting the Receivables Turnover Ratio A recent annual report for FedEx contained the following data: pre Be Accounts receivable Less: Allowances Net accounts receivable Net sales (assume all on credit) credit) (dollars in thousands) Current Year Previous Year $ 7,851.000 $7.430,000 252,000 178,000 $ 7,599,000 $7,252,000 $60,319,000 Source: FedEx Corporation Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year 2. Explain the meaning of each calculated number.
A recent annual report for NPS contained the following data: (dollars in thousands) Current Year Previous...
A recent annual report for NPS contained the following data:
(dollars in thousands)
Current Year
Previous Year
Accounts receivable
$
3,727,000
$
4,527,000
Less: Allowance for doubtful accounts
185,000
148,000
Net accounts receivable
$
3,542,000
$
4,379,000
Net sales (assume all on credit)
$
35,397,000
Required:
1. Determine the receivables turnover ratio and
average days sales in receivables for the current year.
(Use 365 days a year. Do not round intermediate
calculations. Enter your answers in thousands not in
dollars.)...
A recent annual report for NPS contained the following data Accounts receivable Less: Allowance for doubtful...
A recent annual report for NPS contained the following data Accounts receivable Less: Allowance for doubtful accounts Net accounts receivable Net sales (assume all on credit) (dollars in thousands) Current Year Previous Year $ 3,737,000 $4,547,000 178,000 145,000 5 3,559, eee $4,402,800 $34,597,000 Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year (Use 365 days a year. Do not round Intermediate calculations. Enter your answers in thousands not in dollars.) Receivables Turnover...
E13-7 Computing and Interpreting Selected Liquidity Ratios (LO 13-4, LO 13-5] Double West Suppliers (DWS) reported...
E13-7 Computing and Interpreting Selected Liquidity Ratios (LO 13-4, LO 13-5] Double West Suppliers (DWS) reported sales for the year of $200,000, all on credit. The average gross profit percentage was 30 percent on sales. Account balances follow: Accounts receivable (net) Inventory Beginning $35,000 50,000 Ending $45,000 30,000 Required: 1. Compute the following turnover ratios. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. Required...
help with both of these problems please E6-7 E6-12 -L06-2 Recording Bad Debt Expense Estimates and...
help with both of these problems please
E6-7
E6-12
-L06-2 Recording Bad Debt Expense Estimates and Write-offs Using the Percentage of Credit Sales Method During the current year. Adams Assembly, Inc., recorded credit sales of $1,300,000. Based on prior experience, it estimates a l percent bad debt rate on credit sales. Required: Prepare journal entries for each transaction: a. On September 29 of the current year, an account receivable for $4,000 from March of the current year was determined to...
Saved Help Save & Exits Check my Required information E6-5 (Algo) Evaluating the Annual Interest Rate...
Saved Help Save & Exits Check my Required information E6-5 (Algo) Evaluating the Annual Interest Rate Implicit in a Sales Discount with Discussion of Management Choice of Financing Strategy LO6-1 The following information applies to the questions displayed below.) Clark's Landscaping bills customers subject to terms 3/15, 1/60. E6-5 Part 1 Required: 1. Compute the annual interest rate implicit in the sales discount (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percentage...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
L06-4,6-5 APG-7 Recording Receivables Transactions Reporting Accounts Receivable, and interpreting Ratios (PG-7) Rodamex Inc. reported the...
L06-4,6-5 APG-7 Recording Receivables Transactions Reporting Accounts Receivable, and interpreting Ratios (PG-7) Rodamex Inc. reported the following summer transactions during the year ended December 31, 2018. a. Sold merchandise for $5,000,000, including $500,000 cash and $4,500,000 on account, with terms net 30 b. Sales returns and allowances, 850,000, 10 percent related to cash sales, and 90 percent related to sales on account c. Received 84,200,000 from customers on credit sales. d. Wrote off $17,000 in uncollectible accounts receivable. c. Recovered...
Check my wo E6-23 (Algo) Recording, Reporting, and Evaluating a Bad Debt Estimate Using Aging Analysis...
Check my wo E6-23 (Algo) Recording, Reporting, and Evaluating a Bad Debt Estimate Using Aging Analysis L06-2 Brown Cow Dairy uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $11,000; (2) up to 120 days past due, $4,000; and (3) more than 120 days past that for each age group, the average loss rate on the amount of...
E6-24 Computing and Interpreting the Receivables Turnover Ratio A recent annual report for FedEx contained the following data: pre Be Accounts receivable Less: Allowances Net accounts receivable Net sales (assume all on credit) credit) (dollars in thousands) Current Year Previous Year $ 7,851.000 $7.430,000 252,000 178,000 $ 7,599,000 $7,252,000 $60,319,000 Source: FedEx Corporation Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year 2. Explain the meaning of each calculated number.
A recent annual report for NPS contained the following data:
(dollars in thousands)
Current Year
Previous Year
Accounts receivable
$
3,727,000
$
4,527,000
Less: Allowance for doubtful accounts
185,000
148,000
Net accounts receivable
$
3,542,000
$
4,379,000
Net sales (assume all on credit)
$
35,397,000
Required:
1. Determine the receivables turnover ratio and
average days sales in receivables for the current year.
(Use 365 days a year. Do not round intermediate
calculations. Enter your answers in thousands not in
dollars.)...
A recent annual report for NPS contained the following data Accounts receivable Less: Allowance for doubtful accounts Net accounts receivable Net sales (assume all on credit) (dollars in thousands) Current Year Previous Year $ 3,737,000 $4,547,000 178,000 145,000 5 3,559, eee $4,402,800 $34,597,000 Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year (Use 365 days a year. Do not round Intermediate calculations. Enter your answers in thousands not in dollars.) Receivables Turnover...
E13-7 Computing and Interpreting Selected Liquidity Ratios (LO 13-4, LO 13-5] Double West Suppliers (DWS) reported sales for the year of $200,000, all on credit. The average gross profit percentage was 30 percent on sales. Account balances follow: Accounts receivable (net) Inventory Beginning $35,000 50,000 Ending $45,000 30,000 Required: 1. Compute the following turnover ratios. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. Required...
help with both of these problems please
E6-7
E6-12
-L06-2 Recording Bad Debt Expense Estimates and Write-offs Using the Percentage of Credit Sales Method During the current year. Adams Assembly, Inc., recorded credit sales of $1,300,000. Based on prior experience, it estimates a l percent bad debt rate on credit sales. Required: Prepare journal entries for each transaction: a. On September 29 of the current year, an account receivable for $4,000 from March of the current year was determined to...
Saved Help Save & Exits Check my Required information E6-5 (Algo) Evaluating the Annual Interest Rate Implicit in a Sales Discount with Discussion of Management Choice of Financing Strategy LO6-1 The following information applies to the questions displayed below.) Clark's Landscaping bills customers subject to terms 3/15, 1/60. E6-5 Part 1 Required: 1. Compute the annual interest rate implicit in the sales discount (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percentage...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
L06-4,6-5 APG-7 Recording Receivables Transactions Reporting Accounts Receivable, and interpreting Ratios (PG-7) Rodamex Inc. reported the following summer transactions during the year ended December 31, 2018. a. Sold merchandise for $5,000,000, including $500,000 cash and $4,500,000 on account, with terms net 30 b. Sales returns and allowances, 850,000, 10 percent related to cash sales, and 90 percent related to sales on account c. Received 84,200,000 from customers on credit sales. d. Wrote off $17,000 in uncollectible accounts receivable. c. Recovered...
Check my wo E6-23 (Algo) Recording, Reporting, and Evaluating a Bad Debt Estimate Using Aging Analysis L06-2 Brown Cow Dairy uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $11,000; (2) up to 120 days past due, $4,000; and (3) more than 120 days past that for each age group, the average loss rate on the amount of...
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