Question

Blossom Company has these comparative balance sheet data: BLOSSOM COMPANY Balance Sheets December 31 2022 2021 Cash $ 21,630 $43,260 Accounts receivable (net) 100,940 86,520 Inventory 86,520 72,100 Plant assets (net) 288,400 259,560 $497,490 $461,440 $ 72,100 $ 86,520 Accounts payable Mortgage payable (15%) 144,200 144,200 Common stock, $10 par 201,880 173,040 Retained earnings 79,310 57,680 $497,490 $461,440 Additional information for 2022: 1. Net income was $32,400. 2. Sales on account were $376,500. Sales returns and allowances amounted to $26,700. 3. Cost of goods sold was $202,100. 4. Net cash provided by operating activities was $59,100. 5. Capital expenditures were $29,400, and cash dividends were $17,300.

Answer 1

Blossom Company has these comparative balance sheet data: BLOSSOM COMPANY Balance Sheets December 31 2022 2021 Cash $ 21,630

Blossom balance company has these comparitive sheet data: sales on account Sales tetums ond allowances het credit sales $ 376,500 $ 26,700 $ 349,800 average occounts receivable {begining accounts receivable + ending accounts receivable)/2 averago accounts receivable = ($86,520 +$ 100,940)/2 average accounts receivable = $ 93,700 ط accounts receivable tumover = net credit sales / average 'accounts receivable accounts receivable turnover = $ 349,800 $93,730 accounts receivable turnover -3.73 times turnover average collection period = 365 accounts receivable average collection period : 368/4 3.43 average collection period : 97.86 days