Answer the following questions by using the following data taken from the financial statement of 2companies:Company ABCAnnual Sales ( on Credit )$1,324,600$936,720Company DEFAnnual Sales ( on Credit )Cost of Goods Sold$2,748,308Cost of Goods Sold$1,709,406Average InventoryAverage Accounts ReceivableAverage Accounts Payable$225,025$346,007$175,456Average InventoryAverage Accounts ReceivableAverage Accounts Payable$356,394$300,000$150,000How much is the approximate Days Payable Outstanding of Company DEF?321.954068How much is the approximate Days Inventory Outstanding for CompanyАВС? *88902.9576How much is the approximate Days Sales Outstanding for Company DEF? *76953.8740How much is the approximate Days Inventory Outstanding for CompanyDEF? *764.959088How much is the approximate Days Payable Outstanding of CompanyАВС? *955.684032How much is the approximate Days Sales Outstanding for Company ABC? *876.957640How much is the approximate Cash Conversion Cycle of Company ABC? *88O 1157.84116How much is the approximate Cash Conversion Cycle of Company DEF? *848.11688115Which company shows a better standing when comparing its DPO? *Company ABCCompany DEF9.Company GHINone of the aboveWhich company shows a better standing when comparing its CCC? *Company ABC10.Company DEFCompany GHINone of the aboveO OO OO OООO O

Answer the following questions by using the following data taken from the financial statement of 2 companies: Company ABC Annual Sales ( on Credit ) Cost of Goods Sold Company DEF Annual Sales ( on Credit ) $1,324,600 $936,720 $2,748,308 Cost of Goods Sold $1,709,406 Average Inventory Average Accounts Receivable $346,007 Average Accounts Payable $225,025 Average Inventory Average Accounts Receivable Average Accounts Payable $356,394 $300,000 $150,000 $175,456 How much is the approximate Days Payable Outstanding of Company DEF? 32 1. 95 40 68 How much is the approximate Days Inventory Outstanding for Company АВС? * 88 90 2. 95 76 How much is the approximate Days Sales Outstanding for Company DEF? * 76 3. 95 87 40 O O O O

Answer the following questions by using the following data taken from the financial statement of 2 companies: Company ABC Annual Sales ( on Credit ) Cost of Goods Sold Company DEF Annual Sales ( on Credit ) $1,324,600 $936,720 $2,748,308 Cost of Goods Sold $1,709,406 Average Inventory Average Accounts Receivable $346,007 Average Accounts Payable $225,025 Average Inventory Average Accounts Receivable Average Accounts Payable $356,394 $300,000 $150,000 $175,456 How much is the approximate Days Payable Outstanding of Company DEF? 32 1. 95 40 68 How much is the approximate Days Inventory Outstanding for Company АВС? * 88 90 2. 95 76 How much is the approximate Days Sales Outstanding for Company DEF? * 76 3. 95 87 40 O O O O

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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Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
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.
The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
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, 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
Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
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
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 is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
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