When reviewing the days sales in accounts receivable ration for a short term loan decision 1....
When reviewing the days sales in accounts receivable ration for a short term loan decision
1. a higher result is better than a lower result
2. the overall trend can be ignored
3. the result should be evaluated in conjunction with other profitability ratios
4. the result should be evaluated in conjunction with other liquidity ratios
Homework Answers
Days sales in accounts receivable is the number of days required to collect accounts receivable. For short term decision making, days sales in accounts receivable and other liquidity ratios has to be evaluated.
The answer is 4.
Add Answer to:
When reviewing the days sales in accounts receivable ration for
a short term loan decision
1....
which of the following short term liquidity ratios measure how frequently a company collects its accounts? A- Days sales...
which of the following short term liquidity ratios measure how frequently a company collects its accounts? A- Days sales uncollected B- Days sales inventory C- Accounts receivable turnover D- Acid test ratio
Priscoll Company Balance Sheets December 31 Assets 2020 Cash $ 95,900 Debt investments (short-term) 75,350 Accounts...
Priscoll Company Balance Sheets December 31 Assets 2020 Cash $ 95,900 Debt investments (short-term) 75,350 Accounts receivable 142.480 Inventory 315.100 Prepaid expenses 34,250 Land 178,100 Building and equipment (net) 356,200 Total assets $1,197,380 Liabilities and Stockholders' Equity Notes payable (short-term) $232,900 Accounts payable 89,050 Accrued liabilities 54,800 Bonds payable, due 2023 342.500 Common stock, 510 par 274.000 Retained earning 204,130 Total liabilities and stockholders' equity $1.197.380 2019 $ 89,050 54,800 123,300 226,050 31,510 178,100 253.450 $956 260 $164.400 71.240 54,800...
WILDHORSE COMPANY Balance Sheets December 31 Assets Cash Debt investments (short-term) Accounts receivable Inventory 2022 2021...
WILDHORSE COMPANY Balance Sheets December 31 Assets Cash Debt investments (short-term) Accounts receivable Inventory 2022 2021 $ 70,000 $68,000 51,000 40,000 109,000 91,000 231,000 167,000 27,000 26,000 134,000 134,000 264,000 186,000 $886,000 $712,000 Prepaid expenses Land Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable $171,000 $109,000 Accounts payable 67,000 53,000 Accrued liabilities 41,000 41,000 Bonds payable, due 2025 250,000 170,000 Common stock, $10 par 206,000 151,000 206,000 133,000 Retained earnings Total liabilities and stockholders' equity $886,000...
1. When journalizing for the estimated sales returns, there would be a debit to: A) Sales...
1. When journalizing for the estimated sales returns, there would be a debit to: A) Sales Refunds Payable. B) Cost of Goods Sold. C) Sales Returns and Allowances. D) Accounts Receivable. 2. When journalizing for an actual sales return, there would be a debit to: A) Sales Refunds Payable. B) Cost of Goods Sold. C) Sales Returns and Allowances. D) Accounts Receivable. 3. What amount does a company expect to collect from Accounts Receivable? A) gross amount of Accounts Receivable...
Calculate the ratios below given the financial data presented to your left. Answers Measures of Short-term...
Calculate the ratios below given the financial data presented to your left. Answers Measures of Short-term Liquidity current assets / current liabilities quick assets / current liabilities net sales /accounts receivable 365 days/receivables turnover rate cost of goods sold/inventory current ratio quick ratico receivables turnover rate days to collect receivables inventory turnover rate Measures of Long-term Credit Risk total liabilities/total assets operating income /annual interest expense debt ratio Times Interest Earned Measures of Profitability net income / sales net income/total...
Accounts receivable changes without bad debts Tara's Textiles Currently has credit sales of $359 million per...
Accounts receivable changes without bad debts Tara's Textiles Currently has credit sales of $359 million per year and an average collection period of 64 days Assume that the price of Tara's products is $60 per unit and that the variable costs are $54 per unit. The firm is considering an accounts receivable change that will result in a 202% increase in sales and a 19 6% increase in the average collection period. No change in bad debts is expected. The...
SHOW ALL OF YOUR WORK 6. A firm has cash of 100,000, accounts receivable of 75,000,...
SHOW ALL OF YOUR WORK 6. A firm has cash of 100,000, accounts receivable of 75,000, prepaid expenses of 12,500, accounts payable of 50,000, other current liabilities of 35,000, common stock of 375,000 and long term liabilities of 65,000. The firm also produced a profit of 20,000 during the last calendar year. What is the firms working capital? 7. Which company has the most risk from an investor's standpoint? Firm A has a PE of 84 times and Firm...
2019 Priscoll Company Balance Sheets December 31 Assets 2020 Cash $ 136,500 Debt investments (short-term) 107,250...
2019 Priscoll Company Balance Sheets December 31 Assets 2020 Cash $ 136,500 Debt investments (short-term) 107,250 Accounts receivable 202,800 Inventory 448,500 Prepaid expenses 48,750 Land 253,500 Building and equipment (net) 507,000 Total assets $1,704,300 Liabilities and Stockholders' Equity Notes payable (short-term) $331,500 Accounts payable 126,750 Accrued liabilities 78,000 Bonds payable, due 2023 487,500 Common stock, $10 par 390,000 Retained earnings 290,550 Total liabilities and stockholders' equity $1,704,300 $ 126,750 78,000 175,500 321,750 44,850 253,500 360,750 $1,361,100 $234,000 101,400 78,000 331,500...
SHORT-TERM FINANCING AND OPTIONS CONTRACT Gregg, the CFO and the board of directors of Baldwin Inc....
SHORT-TERM FINANCING AND OPTIONS CONTRACT Gregg, the CFO and the board of directors of Baldwin Inc. have taken enough time to discuss capital budgeting, dividend policy, and capital structure and now want to focus their attention on short-term finance and cash planning of the company. The board is considering the ways to improve the working capital management of the company. They are also discussing various sources of short-term financing and the minimum amount of money to borrow in the short-term...
QUESTION 4 As a barometer of short-term liquidity the current ratio is limited by the nature...
QUESTION 4 As a barometer of short-term liquidity the current ratio is limited by the nature of its components. All of the following are reasons that this is true except: C A firm could have a high current ratio but not be able to meet demands for cash because inventory is salable only at discounted rices. C The balance sheet is prepared as of a particular date and the actual amount of liquid assets may vary considerably from the date...
Priscoll Company Balance Sheets December 31 Assets 2020 Cash $ 95,900 Debt investments (short-term) 75,350 Accounts receivable 142.480 Inventory 315.100 Prepaid expenses 34,250 Land 178,100 Building and equipment (net) 356,200 Total assets $1,197,380 Liabilities and Stockholders' Equity Notes payable (short-term) $232,900 Accounts payable 89,050 Accrued liabilities 54,800 Bonds payable, due 2023 342.500 Common stock, 510 par 274.000 Retained earning 204,130 Total liabilities and stockholders' equity $1.197.380 2019 $ 89,050 54,800 123,300 226,050 31,510 178,100 253.450 $956 260 $164.400 71.240 54,800...
WILDHORSE COMPANY Balance Sheets December 31 Assets Cash Debt investments (short-term) Accounts receivable Inventory 2022 2021 $ 70,000 $68,000 51,000 40,000 109,000 91,000 231,000 167,000 27,000 26,000 134,000 134,000 264,000 186,000 $886,000 $712,000 Prepaid expenses Land Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable $171,000 $109,000 Accounts payable 67,000 53,000 Accrued liabilities 41,000 41,000 Bonds payable, due 2025 250,000 170,000 Common stock, $10 par 206,000 151,000 206,000 133,000 Retained earnings Total liabilities and stockholders' equity $886,000...
Calculate the ratios below given the financial data presented to your left. Answers Measures of Short-term Liquidity current assets / current liabilities quick assets / current liabilities net sales /accounts receivable 365 days/receivables turnover rate cost of goods sold/inventory current ratio quick ratico receivables turnover rate days to collect receivables inventory turnover rate Measures of Long-term Credit Risk total liabilities/total assets operating income /annual interest expense debt ratio Times Interest Earned Measures of Profitability net income / sales net income/total...
Accounts receivable changes without bad debts Tara's Textiles Currently has credit sales of $359 million per year and an average collection period of 64 days Assume that the price of Tara's products is $60 per unit and that the variable costs are $54 per unit. The firm is considering an accounts receivable change that will result in a 202% increase in sales and a 19 6% increase in the average collection period. No change in bad debts is expected. The...
2019 Priscoll Company Balance Sheets December 31 Assets 2020 Cash $ 136,500 Debt investments (short-term) 107,250 Accounts receivable 202,800 Inventory 448,500 Prepaid expenses 48,750 Land 253,500 Building and equipment (net) 507,000 Total assets $1,704,300 Liabilities and Stockholders' Equity Notes payable (short-term) $331,500 Accounts payable 126,750 Accrued liabilities 78,000 Bonds payable, due 2023 487,500 Common stock, $10 par 390,000 Retained earnings 290,550 Total liabilities and stockholders' equity $1,704,300 $ 126,750 78,000 175,500 321,750 44,850 253,500 360,750 $1,361,100 $234,000 101,400 78,000 331,500...
QUESTION 4 As a barometer of short-term liquidity the current ratio is limited by the nature of its components. All of the following are reasons that this is true except: C A firm could have a high current ratio but not be able to meet demands for cash because inventory is salable only at discounted rices. C The balance sheet is prepared as of a particular date and the actual amount of liquid assets may vary considerably from the date...
Most questions answered within 3 hours.
-
Calculate the final discrete available-to-promise quantity for
Week 1 using the following table.
Weeks
1
2...
asked 4 minutes ago -
Bob is gambling in the casino. The probability that he will win
nothing is 0.2. The...
asked 1 hour ago -
A free electron and a free proton are exactly 0.70 cm apart.
A)
Find the magnitude...
asked 1 hour ago -
Identify and Describe the major sources of U.S law. Provide a
sport-related example of each.
asked 2 hours ago -
NASA's Ames Research Center in Mountain View, California, houses
a 20g centrifuge used to conduct research...
asked 2 hours ago -
I want a python code using recursion ONLY.
I cannot use any loops, dictionaries or modules....
asked 2 hours ago -
Tobin Supplies Company expects sales next year to be $450,000.
Inventory and accounts receivable will increase...
asked 3 hours ago -
Give the relative rates for the following with a neighbor at your
desk
PH3(g) to P4(g)...
asked 3 hours ago -
Suppose Acap Corporation will pay a dividend of $2.87 per share
at the end of this...
asked 4 hours ago -
Scientists make earthquake forecasts using data from:
A.
geodesy
B.
seismology
C.
geology
D.
paleoseismology
E....
asked 4 hours ago -
Employee training can
be defined as planned organizational efforts to help employees
learn job-related knowledge, skills,...
asked 5 hours ago -
Which for loop is implemented correctly in Java?
Group of answer choices
for (i = 0...
asked 6 hours ago