Consider the following information: Year 2 Year 1 Accounts receivable $ 88,000 $ 80,000 Merchandise inventory 66,000 80,000 Net sales 408,000 380,000 Cost of goods sold 248,000 228,000 What is the Year 2 receivables turnover ratio for Year 2?

Consider the following information: Year 2 Year 1 Accounts receivable $ 88,000 $ 80,000 Merchandise inventory 66,000 80,000 Net sales 408,000 380,000 Cost of goods sold 248,000 228,000 What is the Year 2 receivables turnover ratio for Year 2?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

See similar textbooks

Related questions

Q: elected sales and operating data for three divisions of different structural engineering firms are…

A: Margin = Net operating income / SalesTurnover = Sales / Average operating assetsReturn on…

Q: (d) Sum-of-the-years'-digits method for 2027 (e) Double-declining-balance method for 2026 tA $ $ LA

A: The Sum-of-the-Years-Digits method allocates depreciation by considering the sum of the years of an…

Q: Requirements: 1. Prepare the budgeted balance sheet for FairviewMedical Supply at April 30. Show…

A: Before we prepare the budgeted balance sheet for "FM S" as at April 30th, we need to find budgeted…

Q: January 1, 2018, Legion Company sold $400,000 of 10% ten-year bonds. Interest is payable…

A: Bond :— Bond is a Loan but in Form of Securities. Bond is a Instruments Used By Government and…

Q: Pearl Co. recently installed some new computer equipment. To prepare for the installation, Pearl had…

A: Asset is something which is owned by the company.Computer equipment is a fixed or non-current asset…

Q: Tristar Production Company began operations on September 1, 2024. Listed below are a number of…

A: A general journal is a chronological record of a company's transactions, where each entry includes…

Q: [The following information applies to the questions displayed below.] Brice Company completed the…

A: Journal Entry :A journal entry is a method of recording transactions in the book of original entry…

Q: Required Compute the following. (Round "Ratios" to 1 decimal place.) Working capital Current ratio…

A: The following formulas used as follows:-1)working capital = Current assets - Current…

Q: TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31 ASSETS Current Assets: Cash Accounts Receivable Prepaid…

A: Current assets refer to those assets which are held by the company for more than one year. These…

Q: Express Delivery Company (EDC) is considering outsourcing its Payroll Department to a payroll…

A: The Payroll is a term commonly used to refer to the total amount of money a company pays to its…

Q: a. Inventory b. Sales c. Cost of goods sold d. Operating expenses e. Net income attributable to…

A: Consolidated financial statements provide a comprehensive financial overview of a group of companies…

Q: 4 Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is…

A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Q: On March 30, 2021, Frank and his wife Susan each bought 1,000 shares of Wolf Corporation stock at…

A: Note: As per our guidelines, only the first three subparts shall be answered.When an asset or…

Q: We leamed how to use the Scenario Manager to view the results of a model when multiple assumptions…

A: The flexible budget is a dynamic budget which can be adjusted according to the changes in volume.…

Q: Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in…

A: The amount that the Internal Revenue Service (IRS) uses to calculate your annual income tax…

Q: Divisional income statements with support department allocations Horton Technology has two…

A: A divisional income statement summarises the financial performance of an operating unit inside your…

Q: Revision of depreciation Equipment with a cost of $930,600 has an estimated residual value of…

A: The depreciation expense is charged on the fixed assets as a reduction in the value of the fixed…

Q: A Company has a material standard of 1.1 pound per unit of output. Each pound has a standard price…

A: Standard quantity for actual production = Actual production units * Standard pounds per unitDirect…

Q: ABC Company makes a single product which has the following standards: Direct materials 2 kilograms…

A: When standard cost of labor differs from actual wage cost, the labor variance arises. It can be…

Q: On March 16, CoCo Childcare bought 120 tumbling mats on account at $100 each. Terms of the purchase…

A: The net method of accounting in the case of purchase records the purchase and accounts payable with…

Q: Plank Co. uses the retail inventory method. The following information is available for the current…

A: ParticulersCostRetailBeginning Inventory$312,000$488,000Purchases$1,180,000$1,660,000Frieght…

Q: Use a tabular summary to record the following transactions for Blossom Company using a perpetual…

A: Accounting equation is the horizontal statement representing accounting effects of each transaction…

Q: Required information Exercise 9-11 (Algo) Record bonds issued at a discount and related semiannual…

A: The bond's face amount less the lower price at which the issuer sold it is known as the discount on…

Q: The Corado Company has predicted sales for the first three quarters of 2024. The predictions are: 1…

A: The objective of the question is to calculate the expected cash inflows for the Corado Company in…

Q: Required information Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced…

A: By obtaining a more exact knowledge of how costs are incurred and dispersed, organizations may…

Q: Peerless Corporation (a U.S. company) made a sale to a foreign customer on December 15, 20X1 for…

A: If a company has transactions in foreign currencies, changes in exchange rates can lead to gains or…

Q: Required Information [The following information applies to the questions displayed below] The…

A: The cost of goods sold includes the cost of goods that were sold during the period. The cost of…

Q: 3. XYZ Ltd incurred $500 000 of manufacturing overhead costs during the financial year 2021.…

A: Lets understand the basics.When applied overhead is less than actual overhead then overhead is known…

Q: Lucia Company has set the following standard cost per unit for direct materials and direct labor.…

A: Direct material price variance = Actual quantity × (Actual price - Standard price) Direct material…

Q: Presented below is information related to Sheridan Company for its first month of operations. Jan.…

A: Accounts Payable Subsidiary Ledger - This is an accounting ledger that shows the summary of each…

Q: Benson Manufacturing started in Year 2 with the following account balances. Cash $5,000 Common stock…

A: Financial statement indicates the financial position, performance, and any other disclosures…

Q: 2. At 1 January 20X6 Steller acquired 75% of the share capital of Nebula for capital of Nebula…

A: Goodwill refers to the intangible value of a business that arises from factors such as its…

Q: Hedged Forecasted Revenue with Adjusting Entry McDonald's Corporation forecasts that it will receive…

A: Hedges of forecasted transactions (which involve variability in cash flows) are considered cash flow…

Q: (a) On January 1, 2025, Sunland Corporation sold a building that cost $261,490 and that had…

A: Non-cash consideration refers to the payment for a purchase of any goods in the form of a non-cash…

Q: Hydro Sports budgets overhead cost of $720,000 for the year. The company manufactures two types of…

A: Overhead rate is the rate used to allocate manufacturing overhead cost to cost objects. It is…

Q: A 1 Chapter 10: Applying Excel 2 3 Data 4 Sales 5 Net operating income 6 Average operating assets 7…

A: a. Return on investment (ROI).Return on investment is the performance measurement used to evaluate…

Q: On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method.…

A: Retail inventory method :The retail inventory method is used to evaluate the ending inventory by…

Q: Cullumber Manufacturing Inc. had sales of $2.70 million for the first quarter of 2022. In making the…

A: For CVP income statement, the contribution margin is calculated as the difference between sales and…

Q: Use the following information to compute each department's contribution to overhead. Which…

A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Q: The Jaecke Group, Inc. manufacturers various kinds of hydraulic pumps. In June 2021, the company…

A: Notes receivable refers to the promissory note issued by the borrower stating the promise to pay a…

Q: The following inventory transactions apply to Green Company for Year 2. January 1 Purchased 240…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. FIFO stands for…

Q: Scott filed his 2022 California tax return and paid his balance due of $125 on November 30, 2023.…

A: A late filing penalty is a financial penalty imposed by tax authorities on individuals or businesses…

Q: Delta Company produces a single product. The cost of producing and selling a single unit of this…

A: In costing, a "special order" refers to a unique or non-recurring customer request for a product or…

Q: Required information [The following information applies to the questions displayed below.] Arctica…

A: Direct material cost is the cost of raw material produced or purchased to produce the final…

Q: Mary and Scott formed a partnership that maintains its records on a calendar-year basis. The balance…

A: In case of capital interest receipt it will be the gain or Loss will be recognized But where as for…

Q: In 2021, Montana Corp. entered into a contract to begin work on a two-year project. Montana…

A: The financial indicator used to assess a business operation's gross profitability is gross profit.…

Q: Exercise 12-7A (Algo) Job-order costing in a service company LO 12-2 Jordan Condos Corporation is a…

A: Income earned from condo 2 = Revenue received from condo 2 - Total cost of condo 2Total cost of…

Q: Nash Company began operations in 2019 and determined its ending inventory at cost and at…

A: The lower-of-cost-or-market (LCM) method is an accounting principle used to value inventory,…

Q: Barbara Strand's regular hourly wage rate is $34, and she receives an hourly rate of $51 for work in…

A: Gross earnings = (40 hours x rate per hour) + ( hours in excess of 40 hours x rate per hour )= (40 x…

Q: During their senior year at Clarkson College, two business students, Gerry Keating and Louise…

A: The different costs that would be incurred is required to be categorized as direct material , Direct…

Question

Denger

Consider the following information: Year 2 Year 1 Accounts receivable $ 88,000 $ 80,000 Merchandise inventory
66,000 80,000 Net sales 408,000 380,000 Cost of goods sold 248,000 228,000 What is the Year 2 receivables
turnover ratio for Year 2?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce to Receivable Turnover Ratio

VIEW

Step 2: Working for average accounts receivable

VIEW

Step 3: Working for Receivable Turnover Ratio

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Question Content Area Based on the following data, what is the accounts receivable turnover? Sales on account during year $700,000 Cost of merchandise sold during year 270,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Merchandise inventory, beginning of year 90,000 Merchandise inventory, end of year 110,000
Determining Gross Profit During the current year, merchandise is sold for $8,100,000. The cost of the goods sold is $4,698,000. a. What is the amount of the gross profit?$ b. Compute the gross profit percentage (gross profit divided by sales). %
Sales Cost of goods sold Operating expenses Sales discounts Sales returns and allowances Interest revenue P 460,000 300,000 85,000 20,000 15,000 5,000 From the details above, compute the net sales.
Required information ($ thousands) Net sales Cost of goods sold Current Year $ 885,182 396,513 Current Year: Prior Year: Determine the Prior Year and Current Year trend percents for net sales using the Prior Year as the base year. (Enter the answers in thousands of dollars.) Prior Year $ 456,779 137,643 Numerator: Trend Percent for Net Sales: Denominator: Trend Percent 0% 0%
A company reported the following: Cost of Goods Sold $202,200 General, Selling, and Administrative Expenses 53,020 Income Tax Expense 3,820 Inventory 13,500 Net Income 24,980 Sales Revenue 289,500 Sales Discounts 2,940 Sales Returns & Allowances 2,540 What is the amount of income before income taxes? Multiple Choice $103,300 $110,650 $28,800 $135,000
During the current year, merchandise is sold for $$59,180 cash and for $86,380 on account. The cost of the goods sold is $94,610. What is the amount of the gross profit? Previous Next Email Instruct %24
The following are ABM Store's year-end balances of selected accounts: Cash, P200,000.00; Sales, P185,000.00; Sales Discount, P5,000.00; Cost of Goods Sold, P80,000.00; Operating Expenses, P40,000.00. a. How much is the net sales? b. How much is the gross profit? C. How much is the net income?
Question Content Area Based on the following data for the current year, what is the number of days' sales in receivables (rounded to one decimal place)? Assume 365 days a year. Sales on account during year $461,647 Cost of merchandise sold during year 196,997 Accounts receivable, beginning of year 41,839 Accounts receivable, end of year 52,205 Merchandise inventory, beginning of year 85,575 Merchandise inventory, end of year 109,714 a.155.7 days b.37.2 days c.77.2 days d.86.7 days