Homework Answers
Solution :-
1. Calculation of Accounts Receivable Turnover Ratio for the year ended May 31, 2015 :-
Accounts Receivable Turnover Ratio = Net Credit sales / Average Accounts Receivable
Revenue for the year ended May 31, 2015 = $ 14670 ( All the sales are on Credit )
Accounts Receivable as on May 31, 2015 = $ 953
Accounts Receivable as on May 31, 2014 = $ 1082
Average Accounts Receivable = (Opening Accounts Receivable + Closing Accounts Receivable ) / 2
Average Accounts Receivable = (Accounts Receivable as on May 31, 2014 + Accounts Receivable as on May 31, 2015 ) / 2
Average Accounts Receivable = ( $ 1082 + $ 953 ) / 2
= $ 1017.5
Therefore , Accounts Receivable Turnover Ratio = $ 14670 / $ 1017.5 = 14.42 Times
2. Calculation of Average Collection Period for an Account Receivable :-
Average Collection Period = 360 Days / Accounts Receivable Turnover Ratio
= 360 Days / 14.42
= 25 Days
Add Answer to:
Accounts Receivable Turnover for Rise-n-shine Company The 2015 annual report of Rise-n-shine Company (the maker of...
Accounts Receivable and Inventory Analyses for Kellogg's and General Mills The following information was obtained from...
Accounts Receivable and Inventory Analyses for Kellogg's and General Mills The following information was obtained from the fiscal year 2015 and 2014 financial statements included in Form 10-K of Kellogg Company and Subsidiaries and General Mills, Inc. and Subsidiaries (Year-ends for Kellogg's are January 2, 2016, and January 3, 2015, and for General Mills are May 31, 2015, and May 25, 2014.) Assume all sales are on credit for both companies (in millions) Kellogg's General Mills Accounts receivable, net End...
Interpreting the Accounts Receivable Footnote Hewlett-Packard Company reports the following in its 2015 10-K report. October...
Interpreting the Accounts Receivable Footnote Hewlett-Packard Company reports the following in its 2015 10-K report. October 31 (in millions) 2015 2014 Accounts receivable $13,363 $13,832 Footnotes to the company's 10-K provide the following additional information relating to its allowance for doubtful accounts. 2015 2014 2013 For the fiscal years ended October 31 (in millions) Allowance for doubtful accounts-accounts receivable Balance, beginning of period Provision for doubtful accounts Deductions, net of recoveries Balance, end of period $232 $332 $464 46 25...
Question 32 Renfro Company had accounts receivable of $100,000 on January 1, 2015. The only transactions...
Question 32 Renfro Company had accounts receivable of $100,000 on January 1, 2015. The only transactions that affected accounts receivable during 2015 were net credit sales of $1,200,000, cash collections of $1,000,000, and accounts written off of $30,000. Compute the ending balance of accounts receivable. Ending balance of accounts receivable Compute the accounts receivable turnover for 2015. (Round answer to 2 decimal places, e.g. 52.75.) Accounts receivable turnover Compute the average collection period in days. (Use 365 days for calculation....
Accounts Receivable Analysis The following data are taken from the financial statements of McKee Technology Inc....
Accounts Receivable Analysis The following data are taken from the financial statements of McKee Technology Inc. Terms of all sales are 2/10, n/55. 2014 2016 $212,000 1,335,900 1,284,800 2015 Accounts receivable, end of year Net sales on account a. For 2015 and 2016, determine (1) the accounts recelvable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. $226,000 $241,200 2016 2015 1. Accounts receivable turnover 2. Number of days'...
Compute Wainwright Company's (a) accounts receivable turnover and (b) average collection period in days.
In 2014, Wainwright Company has net credit sales of $1,300,000 for the year. It had a beginning accounts receivable (net) balance of $101,000 and an ending accounts receivable (net) balance of $107,000. Compute Wainwright Company's (a) accounts receivable turnover and (b) average collection period in days.
Suppose the 2022 financial statements of 3M Company report net sales of $22.2 billion. Accounts receivable...
Suppose the 2022 financial statements of 3M
Company report net sales of $22.2 billion. Accounts
receivable (net) are $2.9 billion at the beginning of the year and
$3.02 billion at the end of the year.
Compute 3M’s accounts receivable turnover. (Round
answer to 1 decimal place, e.g. 12.5.)
Accounts receivable turnover ratio
enter the accounts receivable turnover ratio in times rounded
to 1 decimal place
Compute 3M’s average collection period for accounts receivable
in days. (Round answer to 1 decimal...
Shipit Corporation reported the following rounded amounts (in millions): Accounts Receivable Allowance for Doubtful Accounts Accounts...
Shipit Corporation reported the following rounded amounts (in millions): Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Net Sales (assume all on credit) 2016 $ 5,535 (355) $ 5,180 $43,500 2015 $ 5,240 (360) $ 4,880 $42,000 Required: 1. Determine the receivables turnover ratio and days to collect for 2016. (Use 365 days in a year. Do not round Intermediate calculations. Round your final answers to 1 decimal place.) times Receivables Turnover Ratio Days to Collect days...
Exercise 2 Interpreting the Accounts Receivable Footnote Hewlett-Packard Company reports the following in its 2015 10-K...
Exercise 2 Interpreting the Accounts Receivable Footnote Hewlett-Packard Company reports the following in its 2015 10-K report. October 31 ($ millions) 2015 2014 Accounts receivable........ .......... $13,363 $13,832 Footnotes to the company's 10-K provide the following additional information relating to its allowance for doubtful accounts. For the Fiscal Years Ended October 31 ($ millions) 2015 2014 2013 Allowance for doubtful accounts-accounts receivable Balance, beginning of period ......... $232 $332 Provision for doubtful accounts ....... 46 25 23 Deductions, net of...
Suppose the 2022 financial statements of 3M Company report net sales of $22.0 billion. Accounts receivable...
Suppose the 2022 financial statements of 3M Company report net sales of $22.0 billion. Accounts receivable (net) are $2.7 billion at the beginning of the year and $2.80 billion at the end of the year. Compute 3M’s accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.5.) Accounts receivable turnover ratio enter the accounts receivable turnover ratio in times rounded to 1 decimal place times eTextbook and Media List of Accounts Compute 3M’s average collection period for...
Suppose the 2022 financial statements of 3M Company report net sales of $22.8 billion. Accounts receivable...
Suppose the 2022 financial statements of 3M Company report net sales of $22.8 billion. Accounts receivable (net) are $2.9 billion at the beginning of the year and $3.10 billion at the end of the year. Compute 3M's accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.5.) Accounts receivable turnover ratio times e Textbook and Media List of Accounts Compute 3M's average collection period for accounts receivable in days. (Round answer to 1 decimal place, eg. 12.5. Use 365...
Accounts Receivable and Inventory Analyses for Kellogg's and General Mills The following information was obtained from the fiscal year 2015 and 2014 financial statements included in Form 10-K of Kellogg Company and Subsidiaries and General Mills, Inc. and Subsidiaries (Year-ends for Kellogg's are January 2, 2016, and January 3, 2015, and for General Mills are May 31, 2015, and May 25, 2014.) Assume all sales are on credit for both companies (in millions) Kellogg's General Mills Accounts receivable, net End...
Interpreting the Accounts Receivable Footnote Hewlett-Packard Company reports the following in its 2015 10-K report. October 31 (in millions) 2015 2014 Accounts receivable $13,363 $13,832 Footnotes to the company's 10-K provide the following additional information relating to its allowance for doubtful accounts. 2015 2014 2013 For the fiscal years ended October 31 (in millions) Allowance for doubtful accounts-accounts receivable Balance, beginning of period Provision for doubtful accounts Deductions, net of recoveries Balance, end of period $232 $332 $464 46 25...
Question 32 Renfro Company had accounts receivable of $100,000 on January 1, 2015. The only transactions that affected accounts receivable during 2015 were net credit sales of $1,200,000, cash collections of $1,000,000, and accounts written off of $30,000. Compute the ending balance of accounts receivable. Ending balance of accounts receivable Compute the accounts receivable turnover for 2015. (Round answer to 2 decimal places, e.g. 52.75.) Accounts receivable turnover Compute the average collection period in days. (Use 365 days for calculation....
Accounts Receivable Analysis The following data are taken from the financial statements of McKee Technology Inc. Terms of all sales are 2/10, n/55. 2014 2016 $212,000 1,335,900 1,284,800 2015 Accounts receivable, end of year Net sales on account a. For 2015 and 2016, determine (1) the accounts recelvable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. $226,000 $241,200 2016 2015 1. Accounts receivable turnover 2. Number of days'...
Suppose the 2022 financial statements of 3M
Company report net sales of $22.2 billion. Accounts
receivable (net) are $2.9 billion at the beginning of the year and
$3.02 billion at the end of the year.
Compute 3M’s accounts receivable turnover. (Round
answer to 1 decimal place, e.g. 12.5.)
Accounts receivable turnover ratio
enter the accounts receivable turnover ratio in times rounded
to 1 decimal place
Compute 3M’s average collection period for accounts receivable
in days. (Round answer to 1 decimal...
Shipit Corporation reported the following rounded amounts (in millions): Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Net Sales (assume all on credit) 2016 $ 5,535 (355) $ 5,180 $43,500 2015 $ 5,240 (360) $ 4,880 $42,000 Required: 1. Determine the receivables turnover ratio and days to collect for 2016. (Use 365 days in a year. Do not round Intermediate calculations. Round your final answers to 1 decimal place.) times Receivables Turnover Ratio Days to Collect days...
Exercise 2 Interpreting the Accounts Receivable Footnote Hewlett-Packard Company reports the following in its 2015 10-K report. October 31 ($ millions) 2015 2014 Accounts receivable........ .......... $13,363 $13,832 Footnotes to the company's 10-K provide the following additional information relating to its allowance for doubtful accounts. For the Fiscal Years Ended October 31 ($ millions) 2015 2014 2013 Allowance for doubtful accounts-accounts receivable Balance, beginning of period ......... $232 $332 Provision for doubtful accounts ....... 46 25 23 Deductions, net of...
Suppose the 2022 financial statements of 3M Company report net sales of $22.8 billion. Accounts receivable (net) are $2.9 billion at the beginning of the year and $3.10 billion at the end of the year. Compute 3M's accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.5.) Accounts receivable turnover ratio times e Textbook and Media List of Accounts Compute 3M's average collection period for accounts receivable in days. (Round answer to 1 decimal place, eg. 12.5. Use 365...
Most questions answered within 3 hours.
-
Consider a wave function given by ψ(x)=A sinkx, where k=2π/λ and
A is a real constant....
asked 4 minutes ago -
Let Y = GDP (national income). In equilibrium, Y = C + I + G +...
asked 39 minutes ago -
What obstacle in PROM analysis deals with the fact that doctors
and other professionals feel like...
asked 1 hour ago -
3. State the properties of a buffer solution and the key
components of such a solution....
asked 1 hour ago -
a
gas in a 1.5L container has a pressure of 35mmHg at a temperature
of −25∘C....
asked 4 hours ago -
7.
two cards are drawn from a standard deck of 52 cards.
show the calculation and...
asked 6 hours ago -
how may 8 bit strings start with 1011?
asked 7 hours ago -
Is the fluid pressure at the bottom of a graduated cylinder
dependent on crosssectional area? Explain.
asked 8 hours ago -
4) Suppose a monopolist controls the market for diamonds. The
inverse demand for diamonds is given...
asked 9 hours ago -
Perpetuities have:
equal payments and a set number of equal payment periods.
no application in today’s...
asked 10 hours ago -
RCD Ltd. sells household appliances, including washers, dryers,
dishwashers, stoves, and refrigerators. Most of RCD’s customers...
asked 10 hours ago -
How can astronomers use the Doppler Effect to detect the
presence of an exoplanet around a...
asked 10 hours ago