b. Compute the following Ratios: i. Current Ratio ii. Acid-test Ratio iii. Accounts receivable turnover
Q: How do you compute the receivables turnover ratio?
A: Receivables turnover (RT) ratio: this is an accounting measure which shows the effectiveness of a…
Q: Please help with the calculation of Net profit margin, Gross profit margin, Current ratio, Acid test…
A: Net profit margin = Net profit (loss) / Sales Revenue = - 1410 / 5600 = - 0.25 Given Net income =…
Q: Accounts receivable turnover %3D
A: Sample company's balance sheet and income statement is given. On the bases of data we can find…
Q: The acid-test ratio is a. Current assets divided by current liabilities.b. Cash and current…
A: Acid-test ratio: The acid-test ratio is also known as the Quick assets ratio. This ratio compares a…
Q: Required: a. Compute the current ratio b. Quick ratio d. Asset turnover e. Average collection period…
A: Ratio analysis, the foundation of fundamental analysis, helps to gain a deeper insight into the…
Q: are used to measure the speed in which various accounts are converted into sales or cash. Select…
A: By analyzing financial accounts such as the balance sheet and income statement, ratio analysis is a…
Q: In which of the following types of accounts are increases recorded by credits? A. revenues and…
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: _____________ are used to measure the speed in which various accounts are converted into sales or…
A: Ratio analysis is a financial technique to measure the financial position of the company. It is the…
Q: What is removed from current assets in order to calculate the Quick Ratio? marketable securities…
A: Quick ratio = (Total current Assets - Inventory) / Total current liabilities
Q: Which of the following is included in the calculation of the acid-test (quick) ratio?…
A: No, option A is not the correct answer for this question.
Q: What entry format is appropiate if sales returns and allowances occur on factored accounts? a.…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: calculated the current ratio, acid test ratio, account receivable turnover ratio, net profit margin…
A: Ratio analysis is a method to know the liquidity, profitability and operational efficiency of the…
Q: The current ratio is: Multiple Choice Cash, short-term investments, and accounts receivable divided…
A: Solution: The Current ratio is a ratio which is considered as a liquidity ratio. It represents…
Q: Define Receivables turnover ratio with example.
A: Receivables turnover ratio: It refers to the accounting ratio that shows the efficiency of a firm of…
Q: By the percent of sales method how determine the amount of the adjusted balance of accounts…
A:
Q: Describe the two ratios used byfinancial analysts to monitor a company’s investment in receivables.
A: Ratio: A ratio is a number expressed in terms of another to establish relationship between them.
Q: Calculate current ratio, quick ratio and receivable turnover ratio
A: Current assets = 38,761 Current liabilities = 6,850 Inventory = 6,300 Prepaid expense = 800 Average…
Q: Compute the following ratios: i. Accounts Receivable Turnover ratio; ii. Accounts Payable…
A: Here we have to calculate and determine the different mentioned financial ratios.
Q: Which of the following statements is true?a. Credit sales increase receivables.b. Collections on…
A: Accounts receivable (AR) refers to the balance of cash/money because of a firm for products or…
Q: Explain how to calculate accounts receivable turnover ratio.
A: Accounts receivable turnover: Accounts receivable turnover is a liquidity measure of accounts…
Q: The primary focus of horizontal analysis isa. the income statement only.b. the balance sheet only.c.…
A: Financial statements can be analysed by using two methods. 1) Vertical method. 2) Horizontal method.…
Q: Calculate the following ratios a. Gross profit ration b.Net Profit ratio c. Current Ratio d. Liquid…
A: The accounting ratio is represented as a ratio that exactly is a comparison between two financial…
Q: What does the accounts receivable turnover ratio measure, and how is it calculated?
A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…
Q: Explain why the percentage-of-receivables method is referred to as the balance sheet method and the…
A: Percentage-of-receivables method: It is a method of estimating the bad debts (loss on extending…
Q: How do you calculate Accounts Receivable (AR) Turnover and the Number of Days' Sales in Receivables?…
A:
Q: The following ratios are indicators of liquidity ,except_______ Group of answer choices current…
A: Liquidity of firm is meausred by ablity to satisfy its short term obligations as they come due.
Q: Given the information above, give the following ratios, a.) acid test Ratio b.) working capital c.)…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: What factors affect accounts payable turnover ratio?
A: Accounts Payable ratio is calculated by dividing total supplier purchases by the average accounts…
Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…
A: Under the direct write off method the bad debts is treated as charged to expenses when it is clear…
Q: Define the term Accounts Receivable Turnover?
A: Accounts receivable turnover: This is the ratio which analyzes the number of times accounts…
Q: Choose Current ratio Asset turnover ratio Inventory turnover ratio Receivables turnover ratio
A: Liquidity ratios: Liquidity ratios measure the short-term capacity of a company to pay its maturing…
Q: Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Two bases for estimating uncollectible accounts are: Select one: O A percentage of recelvables and…
A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…
Q: Which of the following ratios is used by the company to determine its ability to pay currently…
A: A business organisation is treated as short term solvent if it is in a position to pay currently…
Q: A. Current Ratio B. Acid-Test Ratio C. Accounts Receivable Turnover,
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Which of the following is included in the calculation of the quick (acid-test) ratio?a. Inventory…
A: While Calculating the quick ratio, only quick assets are taken into consideration
Q: Given the information, give the following ratios; a. acid test ratio b. working capital c.…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: a. Return on equity b. Total assets turnover c. Return on assets d. Current ratio e. Receivables…
A: a. Return on equity = Net Income / Shareholders' Equityb. Total assets turnover = Sales / Total…
Q: Which of the following accounts has a normal debit balance? A. Interest Revenue B. Inventory C.…
A: All assets and expense accounts normally have debit balance. All liabilities and incomes would…
Q: Assess the company’s level of liquidity and comment on its ability to meet its short-term financial…
A: By the given balance sheet and other comprehensive income statement we will calculate and process…
Q: ollowing calculations of receivable turnover is correct? A. Number of days in the year divided by…
A: Solution: Receivable turnover represent the effectiveness of company's ability to collects its…
Q: Calculate the following Ratios: g) Accounts Payable Turnover Ratio h) Debt ratio i) Return on…
A: The ratios mentioned in the question are financial ratios. We can calculate them using the provided…
Q: a. Calculate and interprete the following ratios Receivables days Payables days Inventory days
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Cornerstone Exercise 3-17 Accrued Revenue Adjusting Entries Powers Rental Service had the following items that require adjustment at year end. Earned $9,880 of revenue from the rental of equipment for which the customer had not yet paid. Interest of S650 on a note receivable has been earned but not yet received. Required: Prepare the adjusting entries needed at December 31. What is the effect on the financial statements if these adjusting entries are not made?Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com. Required: Which accounts on the balance sheet and income statement of each company may require adjusting entries? Would these accounts require accruals or deferrals?Problem 1-60A Income Statement and Balance Sheet The following information for Rogers Enterprises is available at December 31, 2019 and includes all of Rogers financial statement amounts except retained earnings: Required: Prepare a single-step income statement and a c1assified balance sheet for the year ending December 31, 2019, for Rogers.
- Case 3-78 Interpreting Closing Entries Barnes Building Systems made the following closing entries at the end of a recent year: a. Income Summary ............................. 129,750 Retained Earnings ........................ 129,750 b. Retained Earnings ........................... 25,000 Dividends ..................................... 25.000 c. Sales Revenue .................................. 495,300 Income Summary ......................... 495,300 d. Income Summary ............................. 104,100 Interest Expense ........................... 104,100 Required: If the sales revenue identified in Entry c was Barness only revenue, what was the total amount of Barness expenses?Brief Exercise 3-36 Preparing and Analyzing Closing Entries At December 31, 2019, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, cost of Goods sold, $31,000; Retained $20,000; Interest Expense, $3,200; Dividends, $5,000, Wages Expense $5,000, and Interest Payable, $2,100. Required: Prepare the closing entries for Aulani at December 31, 2019. How does the closing process affect Aulanis retained earnings?Net Income: 51,150 Ledger accounts, adjusting entries, financial statements, and closing entries; optional spreadsheet The unadjusted trial balance of Lakota Freight Co. at March 31, 20Y4, the end of the year, follows: The data needed to determine year-end adjustments are as follows (a) Supplies on hand at March 31 arc 7,500 (b) Insurance premiums expired during year are 1,800. (c) Depreciation of equipment during year is 8,350 (d) Depreciation of trucks during year is 6,200 (e) Wages accrued but not paid at March 31 are 600 Instructions 1. For each account listed in the trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark () in the Posting Reference column. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet Add the account listed in part (3) as needed. 3-Journalize and post the adjusting entries, inserting balances in the accounts affected. Record the adjusting entries on Page 26 of the journal. The following additional accounts from Lakota Freight Co.s clean of accounts should lie used: Wages Payable, 22; Supplies Expense, 52; Depreciation ExpenseEquipment. 55; Depreciation ExpenseTrucks. 56; Insurance Expense. 57. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of stockholders equity, and a balance sheet. During the year ended March 31, 20Y4, additional common stink of 6,000 was issued 6. Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 7. Prepare a post-closing trial balance.
- Exercise 3-54 Recreating Adjusting Entries Selected balance sheet accounts for Gardner Company are presented below. Required: Analyze each account and recreate the journal entries that are made. For deferrals, be sure to include the original journal entry as well as the adjusting journal entry. Month end is May 31, 2019.Adjusting entries and adjusted trial balances Reece Financial Services Co., which specializes in appliance repair services, it owned and operated by Joni Reece. Reece Financial Services accounting clerk prepared the following unadjusted trial balance at July 31, 20Y9: The data needed to determine year-end adjustment are as follows: Depreciation of building for the year, 6,400. Depreciation of equipment for the year, 2,800. Accrued salaries and wages at July 31, 900. Unexpired insurance at July 31, 1,500. Fees earned but unbilled on July 31, 10,200. Supplies on hand at July 31, 615. Rent unearned at July 31, 300. Instructions 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation ExpenseBuilding; Depreciation ExpenseEquipment; and Supplies Expense. 2. Determine the balances of tile accounts affected by the adjusting entries, and prepare an adjusted trial balance.Exercise 1-48 Income Statement The following information is available for Wright Auto Supply at December 31, 2019. Required: 1. Prepare a single-step income statement for the year ended December 31, 2019. 2. Prepare a multiple-step income statement for the year ended December 31, 2,019. 3. CONCEPTUAL CONNECTION Comment on the differences between the single-step and the multiple-step income statements.
- Exercise 3-58 Preparing a Balance Sheet Refer to the unadjusted trial balance for Oxmoor Corporation in Exercise 3-56. Required: Prepare a classified balance sheet for Oxmoor at December 3 l , 2019.Problem 3-66A Effects of Adjusting Entries on the Accounting Equation Four adjusting entries are shown below. Wages Expense ……………………3,410 Wages Payable ……………………3,410 Accounts Receivable …………. 8,350 Service Revenue .….….….….….…..8,350 Rent Expense ……………….. 2,260 Prepaid Rent .….….….….….….… 2,260 Unearned Service Revenue ……………………… 5,150 Service Revenue …………………………………………….. 5,150 Required: CONCEPTUAL CONNECTION Analyze the adjusting entries and identify their effects on the financial statement accounts. (Note: Ignore any income tax effects.) Use the following format for your answer:Problem 2-57A Inferring Transactions from T-Accounts The following T-accounts summarize the operations of Chen Construction Company for July, 2019. Required: CONCEPTUAL CONNECTION Assuming that only one transaction occurred on each day (beginning on July 2) and that no dividends were paid, describe the transactions that most liker took place. Prepare a trial balance at July 31, 2019.