The following data were taken from the records of PRAISEWORTHY Company for the year ended December 31, 2020 its first year of operations: Sales on account P20,000,000 Collections from customers (excluding collections from recoveries) 16,000,000 Doubtful accounts expense 500,000 Accounts written off 400,000 Merchandise returned by customers (at selling price) 300,000 Discounts taken by customers 200,000 Collections on accounts written off 100,000 What is the balance of accounts receivable on December 31, 2020?

The following data were taken from the records of PRAISEWORTHY Company for the year ended December 31, 2020 its first year of operations: Sales on account P20,000,000 Collections from customers (excluding collections from recoveries) 16,000,000 Doubtful accounts expense 500,000 Accounts written off 400,000 Merchandise returned by customers (at selling price) 300,000 Discounts taken by customers 200,000 Collections on accounts written off 100,000 What is the balance of accounts receivable on December 31, 2020?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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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.
uarez Department Store has derived the following data from the store’s operations in the year ended December 31, 2019. Net Sales $10,000Net Income ? Current Liabilities 2,000Selling Expenses 1,000Long term liabilities 1,600Total Assets 6,800Stockholders’ equity ?Gross Profit ?Cost of Goods Sold 7,000Current Assets 4,000Income tax expense and other non-operating items 220Operating income ?General and administrative expenses 980Plant and equipment 2,600Other assets ?Using the given data, prepare for Juarez Department store a: Classified balance sheet at December 31, 2019. Classified income statement for the year ended December 31, 2019. Show supporting computations used in determining the missing amounts. How does Income tax expense differs from normal operating expenses such as advertising and salaries? How do you present income tax expense in a classified income statement?  An income statement is a summary of revenues and expenses and gains and losses, ending with net income for a…
The following information is shown in the accounting records of ToDas Company for the current year 2020. Balances as of Jan 1 Cash 620,000; Accounts receivable 670,000; Inventory 860,000; Accounts Payable 530,000. Balances as of Dec 31 Accounts receivable 900,000; Inventory 780,000; Accounts Payable 480,000. The total sales and cost of goods sold were P7,980,000 and P5,830,000, respectively. All sales and all merchandise purchases were made on credit. Various expenses of P1,070,000 were paid on cash. Assume that there were no other pertinent transactions. The cash balance on December 31, 2020
Sheridan Company provides the following information for the month ended October 31, 2022: sales on credit $366,100, cash sales $108,300, sales discounts $5,100, and sales returns and allowances $12,900.Prepare the sales section of the income statement based on this information.
GGG Traders recruited you as their accountant for 30 June 2020 financial year. The business has the following information Credit sales 305 000 Mark-up 30% Opening stock 18 600 Closing stock 24 800 Total expenses 34 250 Debtors Turnover 15 times Creditors turnover 8 times Current Assets 68 400 Current Liabilities 35 500 Calculate the following: a . Gross profit b. Cost of sales c. Purchases d. Inventory turnover e. Net profit f. Debtors balance g. Creditors balance h. Current Ratio i. Cash balance j. Bank overdraft
Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): 2021 2020 Accounts receivable (net) $ 20 $ 16 Net sales $ 115 $ 100 Cost of goods sold $ 60 $ 55 Net income $ 20 $ 17 Inventory turnover 5.22 Return on assets 10.3 % Equity multiplier 2.36 Dowling's 2021 average collection period is (rounded)? Show your work. Question 44 options:
Window World Company's income statement for the year ending December 31, 2024 included the following items: Interest revenue $65,500 Salaries expense 85,000 Cost of goods sold 217,600 The following balances have been excerpted from the company's comparative balance sheets: 31-Dec-24 31-Dec-23 Interest receivable $9,100 $7,500 Salaries payable 8,900 4,200 Accounts payable 12,700 10,900 Inventory 36,100 32,500 The amount of cash paid by the companies for salaries in 2024 was Select one: $89,700. $93,900. $80,300. $80,800.
Window World Company's income statement for the year ending December 31, 2024 included the following items: Interest revenue $65,500 Salaries expense 85,000 Cost of goods sold 217,600 The following balances have been excerpted from the company's comparative balance sheets: 31-Dec-24 31-Dec-23 Interest receivable $9,100 $7,500 Salaries payable 8,900 4,200 Accounts payable 12,700 10,900 Inventory 36,100 32,500 The amount of cash paid by the company to suppliers in 2024 was Select one: $215,800. $212,200. $219,400. $248,290.
Problem I. The following data represent selected information from the comparative income statement and balance sheet for Little CPA Company for the years ended December 31, 2020 and 2019: 2020 2019 Net Sales (all on credit) P370,000 P333,000 Cost of goods sold 160,000 150,000 Gross profit 210,000 183,000 Income from operations 95,000 87,000 Interest expense 8,000 8,000 Net income 70,000 57,000 Cash 10,000 14,000 Accounts receivable, net 30,000 25,000 Inventory 43,000 40,000 Prepaid expenses 5,000 7,000 Total current assets 88,000 86,000 Total noncurrent assets 112,000 104,000 Total current liabilities 70,000 60,000 Total noncurrent liabilities 40,000 45,000 Ordinary share capital, no par* 60,000 60,000 Retained earnings 30,000 25,000 Note: 10,000 ordinary shares have been issued and outstanding since the company was established. They had a…
Problem I. The following data represent selected information from the comparative income statement and balance sheet for Little CPA Company for the years ended December 31, 2020 and 2019: 2020 2019 Net Sales (all on credit) P370,000 P333,000 Cost of goods sold 160,000 150,000 Gross profit 210,000 183,000 Income from operations 95,000 87,000 Interest expense 8,000 8,000 Net income 70,000 57,000 Cash 10,000 14,000 Accounts receivable, net 30,000 25,000 Inventory 43,000 40,000 Prepaid expenses 5,000 7,000 Total current assets 88,000 86,000 Total noncurrent assets 112,000 104,000 Total current liabilities 70,000 60,000 Total noncurrent liabilities 40,000 45,000 Ordinary share capital, no par* 60,000 60,000 Retained earnings 30,000 25,000 Note: 10,000 ordinary shares have been issued and outstanding since the company was established. They had a…
Hisense Traders recruited you as their accountant for 31 July 2021 financial year. The Business has the following information. Credit Sales N$ 582 000 Mark-up N$ 30% Opening Stock N$ 38 400 Closing Stock N$ 18 800 Total expenses N$ 43 100 Debtors Turnover 12 times Creditors turnover 16 times Current assests N$ 155 600 Current Liabilities N$ 77 800 Calculate the following Gross prifit Cost of sales Purchases Inventory turnover (days) Net profit margin Debtors Balance Creditors Balance Current Ratio Cash Balance Bank overdraft. Round-off your answers to the nearest zero decimal place.
The following financial statement was prepared by employees of Walters Corporation. Walters CorporationIncome StatementYear Ended December 31, 2020 Revenues Gross sales, including sales taxes $1,044,300 Less: Returns, allowances, and cash discounts 56,200 Net sales 988,100 Dividends, interest, and purchase discounts 30,250 Recoveries of accounts written off in prior years 13,850 Total revenues 1,032,200 Costs and expenses Cost of goods sold, including sales taxes 465,900 Salaries and related payroll expenses 60,500 Rent 19,100 Delivery expense and freight-in 3,400 Bad debt expense 27,800 Total costs and expenses 576,700 Income before other items 455,500 Other items Loss on discontinued styles (Note 1) 71,500 Loss on sale of marketable securities (Note 2) 39,050 Loss on sale of warehouse (Note…