QUESTION 17 When a company starts slowing down it repayment rate to its suppliers while maintaining...
QUESTION 17
- When a company starts slowing down it repayment rate to its suppliers while maintaining constant sales, what is the most likely outcome?
|
a. |
Increases in cost of goods sold |
|
|
b. |
Increases in days sales payable |
|
|
c. |
Decreases in accounts payable |
Homework Answers
b.Increases in days sales payable
Days sales payable indicates average number of days the company takes to pay back its suppliers.
As the repayment rate is reducing, the days sales payable rate increases
Add Answer to:
QUESTION 17
When a company starts slowing down it repayment rate to its
suppliers while maintaining...
The Down Towner has sales of $748,320 and average accounts payable of $128,209. The cost of...
The Down Towner has sales of $748,320 and average accounts payable of $128,209. The cost of goods sold is equivalent to 62 percent of sales. How long does it take the company to pay its suppliers? Multiple Choice 79.69 days 93.45 days 89.85 days 100.86 days 74.07 days
Question is down here^ The accounts related to the Balance Sheet as well as Income Statement...
Question is down here^
The accounts related to the Balance Sheet as well as Income Statement for a company are given in 2017. below as of Dec 31st 2017. Company Y does not distribute any dividends and had no depreciation Accounts in $ Sales Common Stock Cost of Goods Sold Accumulated Retained Earnings Interest Long Term Debt Taxes 2017 2,000 1,776 1,400 224 320 3,200 56 200 3,600 600 1,200 880 320 Notes Payable Net Fixed Assets Accounts Payable Inventory...
Question 1 Crane Company made a purchase of merchandise on credit from Wildhorse Company on August...
Question 1 Crane Company made a purchase of merchandise on credit from Wildhorse Company on August 8, for $9400, terms 2/10, n/30. On August 17, Crane makes payment to Wildhorse. The entry on August 17 for Crane Company is: Accounts Payable Cash 9400 9400 9212 9212 Accounts Payable Cash Accounts Payable Inventory Cash 9400 9212 9400 Accounts Payable Purchase Returns and Allowances Cash 188 9212 Click if you would like to Show Work for this question: Open Show Work Question...
Scroll down to complete all parts of this task. The table below presents some ratios that...
Scroll down to complete all parts of this task. The table below presents some ratios that were considered significant by an auditor in the current and prior year's audits of a client. Select from the option is provided the most likely explanation for the analytical results. Each choice may be used once more than once, or not at all Ratio Year 1 Explanation 1. Debt to equity Select an option below 2. Gross profit percentage 3. Quick 4. Inventory turnover...
Use the following information to answer items 4-7: For its most recent year a company had...
Use the following information to answer items 4-7: For its most recent year a company had Sales (all on credit) of $830,000 and Cost of Goods Sold of $525,000. At the beginning of the year its Accounts Receivable were $80,000 and its Inventory was s100,000. At the end of the year its Accounts Receivable were $86,000 and its Inventory was $110,000. 4. The inventory turnover ratio for the year was . 5. The accounts receivable turnover ratio for the year was 6. On...
Problem 17-OJA (Video) The income statement of Whitlock Company is presented here. WHITLOCK COMPANY $7.477.800 For...
Problem 17-OJA (Video) The income statement of Whitlock Company is presented here. WHITLOCK COMPANY $7.477.800 For the Year Ended November 30, 2020 Sales revenue Cost of goods sold Beginning inventory $1,888,900 Purchases 4,380,300 Goods available for sale 6,269,200 Ending inventory 1,326,600 Total cost of goods sold Gross profit Operating expenses Net income 4,942,600 2,535,200 1,141,700 $1,393,500 Additional information 1. Accounts receivable increased $196,300 during the year, and inventory decreased 5562.300 2. Prepaid expenses increased $168,900 during the year. 3. Accounts...
Novak Company uses a perpetual inventory system. Its beginning inventory consists of 113 units that cost...
Novak Company uses a perpetual inventory system. Its beginning inventory consists of 113 units that cost $77 each. During June, (1) the company purchased 338 units at $77 each on account, (2) returned 14 units for credit, and (3) sold 281 units at $113 each. Journalize the June transactions. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent...
8 Other things held constant, ifa fir tretches" e, delays paying) its accounts payable, this will lengthen its cash...
8 Other things held constant, ifa fir tretches" e, delays paying) its accounts payable, this will lengthen its cash comvesion cycle (CCC) a True h. Fale 9. Which of the following actions should Reece Windows take if it wants to tedluce its cash conversion cycle a. Start paying its bills sooner, which would reduce the average accounts payable but not affect sales b Take steps to reduce the DSO e. Sell common stock to retire longterm bonds d. Sell an...
12. Marshall Inc. recently hired your conting firm to improve the company's performance. It has been highly profita...
12. Marshall Inc. recently hired your conting firm to improve the company's performance. It has been highly profitable but has been experiencing cash shortages due to its high a th me. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365day year, what is the firm's present cash conversion cycle! $75.000 $600,000 $360,000 $160,000 $25,000 Average inventory Annual sales - Annual cost of goods sold - Average accounts...
Ture or fause question UI TALSE. A company had net sales of $545,000 and cost of goods sold of S345,000. Its gross 1...
Ture or fause question
UI TALSE. A company had net sales of $545,000 and cost of goods sold of S345,000. Its gross 1. margin equals $890,000 An accelerated depreciation method creates a larger depreciation charge as the asset comes closer to the end of its useful life. 3. JUnits of Production is an accelerated depreciation method. __4. The term "depletion" as applied to intangible assets follows the matching principle. Even if the end of an accounting period occurs between the...
Question is down here^
The accounts related to the Balance Sheet as well as Income Statement for a company are given in 2017. below as of Dec 31st 2017. Company Y does not distribute any dividends and had no depreciation Accounts in $ Sales Common Stock Cost of Goods Sold Accumulated Retained Earnings Interest Long Term Debt Taxes 2017 2,000 1,776 1,400 224 320 3,200 56 200 3,600 600 1,200 880 320 Notes Payable Net Fixed Assets Accounts Payable Inventory...
Question 1 Crane Company made a purchase of merchandise on credit from Wildhorse Company on August 8, for $9400, terms 2/10, n/30. On August 17, Crane makes payment to Wildhorse. The entry on August 17 for Crane Company is: Accounts Payable Cash 9400 9400 9212 9212 Accounts Payable Cash Accounts Payable Inventory Cash 9400 9212 9400 Accounts Payable Purchase Returns and Allowances Cash 188 9212 Click if you would like to Show Work for this question: Open Show Work Question...
Scroll down to complete all parts of this task. The table below presents some ratios that were considered significant by an auditor in the current and prior year's audits of a client. Select from the option is provided the most likely explanation for the analytical results. Each choice may be used once more than once, or not at all Ratio Year 1 Explanation 1. Debt to equity Select an option below 2. Gross profit percentage 3. Quick 4. Inventory turnover...
Use the following information to answer items 4-7: For its most recent year a company had Sales (all on credit) of $830,000 and Cost of Goods Sold of $525,000. At the beginning of the year its Accounts Receivable were $80,000 and its Inventory was s100,000. At the end of the year its Accounts Receivable were $86,000 and its Inventory was $110,000. 4. The inventory turnover ratio for the year was . 5. The accounts receivable turnover ratio for the year was 6. On...
Problem 17-OJA (Video) The income statement of Whitlock Company is presented here. WHITLOCK COMPANY $7.477.800 For the Year Ended November 30, 2020 Sales revenue Cost of goods sold Beginning inventory $1,888,900 Purchases 4,380,300 Goods available for sale 6,269,200 Ending inventory 1,326,600 Total cost of goods sold Gross profit Operating expenses Net income 4,942,600 2,535,200 1,141,700 $1,393,500 Additional information 1. Accounts receivable increased $196,300 during the year, and inventory decreased 5562.300 2. Prepaid expenses increased $168,900 during the year. 3. Accounts...
Novak Company uses a perpetual inventory system. Its beginning inventory consists of 113 units that cost $77 each. During June, (1) the company purchased 338 units at $77 each on account, (2) returned 14 units for credit, and (3) sold 281 units at $113 each. Journalize the June transactions. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent...
8 Other things held constant, ifa fir tretches" e, delays paying) its accounts payable, this will lengthen its cash comvesion cycle (CCC) a True h. Fale 9. Which of the following actions should Reece Windows take if it wants to tedluce its cash conversion cycle a. Start paying its bills sooner, which would reduce the average accounts payable but not affect sales b Take steps to reduce the DSO e. Sell common stock to retire longterm bonds d. Sell an...
12. Marshall Inc. recently hired your conting firm to improve the company's performance. It has been highly profitable but has been experiencing cash shortages due to its high a th me. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365day year, what is the firm's present cash conversion cycle! $75.000 $600,000 $360,000 $160,000 $25,000 Average inventory Annual sales - Annual cost of goods sold - Average accounts...
Ture or fause question
UI TALSE. A company had net sales of $545,000 and cost of goods sold of S345,000. Its gross 1. margin equals $890,000 An accelerated depreciation method creates a larger depreciation charge as the asset comes closer to the end of its useful life. 3. JUnits of Production is an accelerated depreciation method. __4. The term "depletion" as applied to intangible assets follows the matching principle. Even if the end of an accounting period occurs between the...
Most questions answered within 3 hours.
-
Other decisions about scientific claims can have a much broader
impact.ENERGYarrow-10x10.png, environment, health, security - all...
asked 42 seconds ago -
I need to write a research paper and work cited about this
topic: The United States...
asked 23 minutes ago -
Hello! I was wondering if I could have some help?
If the vapor pressure of carvone...
asked 45 minutes ago -
An economist wants to estimate the mean per capita income (in
thousands of dollars) for a...
asked 1 hour ago -
What would be the input/output characteristic of a circuit
obtained by putting two of your 2's-complementers...
asked 1 hour ago -
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 1 hour ago -
Project management question:
Name 3 different types of resources (hint: humans are one
type)
asked 1 hour ago -
Consider the following reaction: C 2H 2( g) + 2H 2( g) C 2H 6(
g)...
asked 1 hour ago -
Consider a 1.0 L buffer containing 0.092 mol L-1 HCOOH and 0.100
mol L-1 HCOO-. What...
asked 2 hours ago -
Koch Realty has owned a vacant land with a FMV of
$775,000 and an adjusted basis...
asked 2 hours ago -
It is estimated 29% of all adults in United States invest in
stocks and that 85%...
asked 2 hours ago -
What does a 2-sided p value of 0.04 mean? (I am not asking if it
is...
asked 2 hours ago