Answered: ABC Company has net sales of $500,000…

Name: ABC Company has net sales of $500,000 and average accounts receivable
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: ABC Company has net sales of $500,000 and average accounts receivable of $100,000. Calculate the accounts receivable turnover ratio.

Business

Accounting

ABC Company has net sales of $500,000 and average accounts receivable of $100,000. Calculate the accounts receivable turnover ratio.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4BE

See similar textbooks

Related questions

Q: Suppose that the income tax law exempts income of less than $8000 from the tax, taxes income between…

A: Average tax rate = Total tax due/Income

Q: INCOME STATEMENT OF QUICK BURGER CORPORATION, (Figures in $ millions) Net sales Costs Depreciation…

A: A cash flow statement provides data regarding all cash inflows that a company receives from its…

Q: Problem 4-24 The following information Purchases Purchase discounts Purchase returns Transportation…

A: Since you have posted multiple questions, as per the guidelines only the first question will be…

Q: Kari is a partner in Lizard Partnership. This year, Kari's share of partnership ordinary income is…

A: Owners of pass-through organisations, such as partnerships, LLCs, sole proprietorships, and S…

Q: For your answers, write value rounded to two decimal points. Include zeros if applicable and do not…

A: Total Productivity Measure = Total Output/ Total Input Total Partial Measure = Total Output/Required…

Q: Units Work in process inventory, beginning 86,000 Units started in process 814,000 Units transferred…

A: Equivalent units mean the number of units on which the cost has been incurred. For Example - 10…

Q: Markus Company's common stock sold for $5.75 per share at the end of this year. dividend of $0.69…

A: Return on equity is calculated by dividing net income to the average shareholder's equity

Q: a. Road Warrior Motor is a company that manufactures and sells cars. Indicate whether each of the…

A: The cost that can be traced back to a specific product and is included in inventory values is known…

Q: Siliconia Manufactuing Ltd. had retained earnings of $400,000 and $50,000 in cash on January 1st,…

A: Financing activities is a section of cash flow statement which is prepared by the entity to…

Q: The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process…

A: Cost per unit represents the total cost of a product per unit of product produced or manufactured.…

Q: Haas Company manufactures and sells one product. The following information pertains to each of the…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Glencove Company makes one model of radar gun used by law enforcement officers. All direct materials…

A: Using the formulas given below we can determine the cost and inventory units: (Beginning Units +…

Q: building cost 3KK Limited commenced the construction of a new manufacturing plant on March 1, 2009.…

A: Capitalization of borrowing costs refers to the practice of adding the interest and other directly…

Q: Kamp, Inc., sells specialized bicycle shoes. At year-end, due to a sudden increase in manufacturing…

A: To determine the amount at which each pair of shoes should be reported on Kamp, Inc.'s year-end…

Q: Dale Walker, Keith Allen, and Issa King have capital balances of $96,930, $77,490, and $6,320,…

A: Partnership is an activity of grouping two or more people for running the business operation to…

Q: Joseph's lunch at a restaurant costs $13.00, without tax. He leaves the waiter a tip of 17% of the…

A: In this question, we will calculate the total cost of the lunch Total cost without tax = Cost of…

Q: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that…

A: A journal entry is a record of a business transaction in your business books.

Q: Actuarial gain or loss – plan assets Fair value of plan assets (1 July 2013) Plus: Return on plan…

A: Actuarial gain or loss refers to the difference between the expected and actual performance of a…

Q: HLOPHEKANE FARMING had the following balances when they commenced a simultaneous liquidation of the…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: uzuki Supply reports the following amounts at the end of 2021 (before adjustment).

A: To record the adjusting entry for uncollectible accounts using the percentage-of-receivables method,…

Q: Quality Service Systems uses a perpetual inventory system. The adjusted trial balance of Quality…

A: The income statement calculates the net income or net loss, which is determined by subtracting the…

Q: Lou Barlow, a divisional manager for Sage Company, has ar year period. His annual pay raises are…

A: It's important to note that the IRR should be interpreted in conjunction with other financial…

Q: 15 Required information [The following information applies to the questions displayed below.] Markus…

A: Average inventory :— It is calculated by dividing sum of ending balance of inventory and beginning…

Q: On January 1, 2022, the Sheffield Company budget committee has reached agreement on the following…

A: The direct material purchase budget is the statement which is prepared by the entity for the purpose…

Q: 22$ AO 1000 cc5fdop soppan saar 14 pios spo anu

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: The units of Manganese Plus available for sale during the year were as follows: Mar. 1 Inventory 22…

A: Lets understand the basics. The COGS (Cost of Goods Sold) computation is based on the cost of a…

Q: Return on assets and cost of financing Non-current Assets: $1,260,000 Current Assets: $250,000…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: Wolverine World Wide, Incorporated, designs, markets, and licenses casual, industrial, performance…

A: The fundamental accounting equation says the total asset is always equal to the sum of the…

Q: QuickBooks Online uses smart learning in its reconciliation tool to help find any rogue…

A: Quick book online is cloud based accounting software, which is used to record accounting…

Q: 7-41. Predetermined Overhead Rates: Ethical Issues Wanda Instrumentation produces navigational…

A: Predetermined overhead rate=Estimated manufacturing overheadEstimated allocation base×100

Q: D Question 37 Echo Company has assets of $622,000, liabilities of $261,000, and equity of $361,000.…

A: Purchase of office equipment will increase the fixed assets balance in balance sheet.

Q: Subject - Accounting Selina is a single taxpayer with a MAGI of $110,000 and an active…

A: Given that data, Modified adjusted gross=$110,000 Active participation rental real estate loss =…

Q: Sales + Less: 2 Manufacturing costs Depreciation Shipping and administrative costs Income before…

A: PAYBACK PERIOD Payback Period is one of the important Capital Budgeting Technique. Payback Period is…

Q: REQUIRED: a. Using EXCEL, prepare the following schedules or statements for 2023: iii. Direct…

A: a. Productions and Inventory S.no Particulars Snapdragon Exynos ( in Units ) ( in Units ) 1…

Q: The equity section of JUJI Corporation as of December 31, 2018, was as follows: Share…

A: Calculation of retain earnings as on March 1, 2019 : Particulars Amount (P) Retained…

Q: Cash book balance RM4,000 Bank statement balance RM 4,270 On comparison on the following were found:…

A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…

Q: During 2022, Pharoah Company sold a building with a book value of $153,500 for proceeds of $183,500.…

A: The cash flow statement (CFS) is categorized into major three types of activities. (1) Cashflow from…

Q: Current Designs faces a number of important decisions that require incremental analysis. One of…

A: The process of deciding whether to produce a product or service in-house or to acquire it from an…

Q: Cherry Corporation, a calendar year C corporation, is formed and begins business on 6/1/2021. In…

A: Expenses directly related to starting a corporation or other type of business are referred to as…

Q: Information on four investment proposals is given below: Investment required Present value of cash…

A: The PI (profitability index) is one of the techniques of capital budgeting that evaluates the…

Q: Exercise 7-7 Petty cash fund LO4 Cameron Co. established a $190 petty cash fund on January 1, 2023.…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: The production department of Hareston Company has submitted the following forecast of units to be…

A: Part 1. Direct materials budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total…

Q: Required: Please fill out the blanks in the table. Note: Indicate the effect of each variance by…

A: The spending variance is the difference between the actual results and flexible budget data. The…

Q: Sub : Accounting Pls answer very fast.I ll upvote correct answer. Thank You Financial information…

A: INVENTORY TURNOVER RATIO Inventory Turnover Ratio is the Ratio between Cost of Goods Sold &…

Q: Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency.…

A: Variance is the difference between the costs estimated and the actual costs. If the estimated or…

Q: you like you!), you are assuming the educa plan to put money into an investment a You believe that…

A: In this question, we will make the discrete cash flow diagram

Q: Prepare the journal entries for the Pharoah Company transactions shown above. (Record journa amount…

A: Journal entry is a written record of transactions occurred in a business. It is a first record book…

Q: Everett Company purchased land and a modern office building on March 1, 20-1 for a combined price of…

A: The journal entries are prepared to record the transactions on regular basis. The non cash assets…

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

A: A simple rate of return is calculated by subtracting the initial value of the investment from its…

Q: MY Autobody's adjusted trial balance on December 31, 2023, appears in the work sheet as follows: No.…

A: First of all, income statement is prepared to calculate the amount of net income. Then Statement of…

Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

ABC Company has net sales of $500,000 and average accounts receivable of $100,000. Calculate the accounts receivable turnover ratio.

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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: Introduction:

VIEW

Step 2: Explanation:

VIEW

Solution

VIEW

Step by step

Solved in 3 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

Montalcino Company had net sales of 54,000,000. Montalcino had the following balances: 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.
Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note: Round answers to two decimal places. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable 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.
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.
FINANCIAL RATIOS Based on the financial statements, shown on pages 605606, for McDonald Carpeting Co. (income statement, statement of owners equity, and balance sheet), prepare the following financial ratios. All sales are credit sales. The balance of Accounts Receivable on January 1, 20--, was 6,800. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and the average number of days required to collect receivables 6. Inventory turnover and the average number of days required to sell inventory
FINANCIAL RATIOS Based on the financial statements, shown on pages 603604, for McDonald Carpeting Co. (income statement, statement of owners equity, and balance sheet), prepare the following financial ratios. All sales are credit sales. The balance of Accounts Receivable on January 1, 20--, was 6,800. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventory
FINANCIAL RATIOS Based on the financial statements for Jackson Enterprises (income statement, statement of owners equity, and balance sheet) shown on pages 596597, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was 21,600. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventory
FINANCIAL RATIOS Based on the financial statements foe Jackson Enterprises (income statement, statement of owners equity, and balance sheet) shown on pages 598599, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was 21,600. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventory
Berry Farms has an accounts receivable balance at the end of 2018 of $425,650. The net credit sales for the year are $924,123. The balance at the end of 2017 was $378,550. What is the number of days sales in receivables ratio for 2018 (round all answers to two decimal places)?
Accounts Receivable Balance Hart Inc. began the year with $315,700 of accounts receivable. During the year, Hart sold a considerable amount of merchandise on credit and collected $2,427,000 of its credit sales. At the end of the year, the accounts receivable balance is $16,800 lower than the beginning balance. Required: Calculate the amount of credit sales during the period.
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
The following select financial statement information from Vortex Computing. Compute the accounts receivable turnover ratios and the number of days sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Vortex Computing if industry average for accounts receivable turnover ratio is 4 times and days sales in receivables ratio is 85 days?