Data on Shicksal Inc. for 2021 are shown below,along with the days sales outstanding of thefirms against which it benchmarks. The firm'snew CFO belleves that the company couldreduce its receivables enough to reduce Its DSOto the benchmarks' average. Use a 365-dayyear. (computations can be rounded to two decimalplaces, final answer rounded to nearest peso)SalesP110,000Accounts receivableP16,000Benchmarks' days sales outstanding (DSO)20.00Fill up your answers on the next three questions.The questions for this data set are:• What is the days sales outstanding underthe current level of receivables? (Round finalanswer to two decimal places)• What should be the level of receivables ifthe company followed the benchmarks'DSO? (Computations can be rounded to twodecimal places, final answer rounded to nearestpeso)• If the benchmark's DSO was followedsubsequently, by how much wouldreceivables decline? (Computations can berounded to two decimal places, final answerrounded to nearest peso)

The question is based on the concept of Financial Accounting.

Data on Shicksal Inc. for 2021 are shown below, along with the days sales outstanding of the firms against which It benchmarks. The firm's new CFO belleves that the company could reduce Its receivables enough to reduce Its DSO to the benchmarks' average. Use a 365-day year. (computations can be rounded to two decimal places, final answer rounded to nearest peso) Sales P110000

Data on Shicksal Inc. for 2021 are shown below, along with the days sales outstanding of the firms against which It benchmarks. The firm's new CFO belleves that the company could reduce Its receivables enough to reduce Its DSO to the benchmarks' average. Use a 365-day year. (computations can be rounded to two decimal places, final answer rounded to nearest peso) Sales P110000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
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?
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Using the following select financial statement information from Mover Supply Depot, compute the accounts receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Mover Supply Depot if the industry average is 4 times?
Long-Term Financing Needed At year-end 2018, Wallace Landscapings total assets were 2.17 million, and its accounts payable were 560,000. Sales, which in 2018 were 3.5 million, are expected to increase by 35% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to 625,000 in 2018, and retained earnings were 395,000. Wallace has arranged to sell 195,000 of new common stock in 2019 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 5%, and 45% of earnings will be paid out as dividends. a. What were Wallaces total long-term debt and total liabilities in 2018? b. How much new long-term debt financing will be needed in 2019? [Hint: AFN New stock = New long-term debt.)
At year-end 2018, total assets for Arrington Inc. were$1.8 million and accounts payable were $450,000. Sales, which in 2018 were $3.0 million,are expected to increase by 25% in 2019. Total assets and accounts payable are proportionalto sales, and that relationship will be maintained; that is, they will grow at the same rate assales. Arrington typically uses no current liabilities other than accounts payable. Commonstock amounted to $500,000 in 2018, and retained earnings were $475,000. Arrington plansto sell new common stock in the amount of $130,000. The firm’s profit margin on sales is5%; 35% of earnings will be retained.a. What were Arrington’s total liabilities in 2018?b. How much new long-term debt financing will be needed in 2019?(Hint: AFN - New stock = New long-term debt.)
Blue Co., a firm that is operating at full capacity, has a balance sheet as of December 31, 2021, that shows that it has a total of P2,300,000 in assets on which two-thirds is fixed asset while current liabilities amounts to P950,000. In 2021, the net income is 190,000, payout ratio is 40%, and profit margin is 15% and no changes in these ratios are projected for the coming years. Sales are projected to increase by 10% next year. How much is the additional financing needed?
The following information is available concerning Ambot Corp.’s expected result in 2020: Total sales on account................................................................................ P900,000 Total cash ……………………………………………….. 30,000 Total non-current assets ………………………………. 370,000 Net profit margin............................................................................. 10% Inventory turnover …………………………………………. 4 times Debt ratio ………………………………………………… 40% No. Of days collection period............................... 73 days (based on 365 days) Gross profit margin ……………………………………….. 40% Current ratio ………………………………………………….. 3.0:1 Required: With the above information, construct an income statement and balance sheet with as much as detail as possible. (Show necessary computations)
Cainhurst Inc. had sales last year totaling $530,000, and its year-end Accounts Receivable were $62,750. The firm sells on terms that call for customers to pay within 30 days after the purchase, but some customers delay payment beyond this deadline (meaning they pay late). On average, how many days LATE do customers pay? Base your answer on a 365-day year when calculating the DSO.
If Brutal Corporation has a balance in account receivable of P80,000, total assets of P520,000, credit sales of P360,000, and current liabilities of P60,000. Assuming a 360-day year, what is the receivable turnover and average collection period, respectively? 4.5; 80 d. 6.0; 60 5; 55.38 e. 8.67; 41.38 44; 250