B. Last year, Nikkola Company had net sales of P2,299,500, and cost of goods sold of P1,755,000. Nikkola had the following balances: Accounts Receivable Inventories January 1 P142,650,000 54,374,200 December 31 P172,350,000 62,625,800 Required: (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 (days sales in receivable or average collection period) 4. Calculate the average inventory 5. Calculate the average inventory ratio 6. Calculate the inventory turnover in days 7. Based on these ratios, does Nikkola appear to be performing well or poorly?
B. Last year, Nikkola Company had net sales of P2,299,500, and cost of goods sold of P1,755,000. Nikkola had the following balances: Accounts Receivable Inventories January 1 P142,650,000 54,374,200 December 31 P172,350,000 62,625,800 Required: (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 (days sales in receivable or average collection period) 4. Calculate the average inventory 5. Calculate the average inventory ratio 6. Calculate the inventory turnover in days 7. Based on these ratios, does Nikkola appear to be performing well or poorly?
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 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning