Numerator:Trend Percent for Cost of Goods Sold:Denominator:Numerator:172021:2020:2019:2018:2017:Is the trend percent for Cost of Goods Sold favorable or unfavorable?11Trend Percent for Accounts Receivable:1Denominator:2021:2020:2019:2018:2017:7Is the trend percent for Accounts Receivable favorable or unfavorable?111ITrend percentTrend percent%%%196% Exercise 13-3 (Algo) Computing and analyzing trend percents LO P1SalesCost of goods soldAccounts receivable2021:2020:Numerator:2019:2018:2017:2021$ 599,194302,14728,941Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether thesituation as revealed by the trend percents appears to be favorable or unfavorable.Numerator:2021:2020:2019:2018:2017:Is the trend percent for Net Sales favorable or unfavorable?Trend Percent for Net Sales:1112028$ 389,087196,34422,684112019$ 320,236163,46821,8401Trend Percent for Cost of Goods Sold;1Denominator:Denominator:2018$ 216,376109,93812,7012017$159,10079,55810,930Trend percentTrend percent%%%%%%%%%

Trend Analysis: Trend analysis is a tool to predict the future trend of stocks or sales, it is the…

Exercise 13-3 (Algo) Computing and analyzing trend percents LO P1 2018 $216,376 109,938 12,701 Sales Cost of goods sold Accounts receivable 2021: 2020: 2019: 2040 2021 $ 599,194 302,147 28,941 Numerator: Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable. 2020 $ 389,087 196,344 22,684 1 2019 $ 320,236 163,468 21,840 Trend Percent for Net Sales: 1 2017 $ 159,100 79,558 10,930 Denominator: Trend percent

Exercise 13-3 (Algo) Computing and analyzing trend percents LO P1 2018 $216,376 109,938 12,701 Sales Cost of goods sold Accounts receivable 2021: 2020: 2019: 2040 2021 $ 599,194 302,147 28,941 Numerator: Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable. 2020 $ 389,087 196,344 22,684 1 2019 $ 320,236 163,468 21,840 Trend Percent for Net Sales: 1 2017 $ 159,100 79,558 10,930 Denominator: Trend percent

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter6: Receivables And Inventories

Section: Chapter Questions

Problem 6.3MBA

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A firm’s Balance Sheet and Income Statement for FY 2021 is displayed below and in the in the attached excel file. Answer the following questions. NOTE: For this question, use the end-of-the year approach (and not the mid-year convention). For example, this means that days receivables = end of FY receivables/daily sales; similarly for the remaining relevant ratios. You may use the tables below BALANCE SHEET 2021 Cash and cash equivalents 280 Receivables 2588 Inventory 2516 Other 189 TOTAL CA 5573 Fixed assets 5024 TOTAL ASSETS 10597 Accounts payable 4713 Short term debt 78 TOTAL CL 4790 LT debt 921 Shareh. Equity 4886 TOTAL LIAB. AND SHARH. EQUITY 10597 INCOME STATEMENT 2021 Sales 19418 COGS 13136 Depreciation 354 SG&A 4952 EBIT 976 Interest Expenses 52 Tax 268 Net income 656 Decompose the return on equity for the FY 2021…
A firm’s Balance Sheet and Income Statement for FY 2021 is displayed below and in the in the attached excel file. Answer the following questions. NOTE: For this question, use the end-of-the year approach (and not the mid-year convention). For example, this means that days receivables = end of FY receivables/daily sales; similarly for the remaining relevant ratios. You may use the tables below BALANCE SHEET 2021 Cash and cash equivalents 280 Receivables 2588 Inventory 2516 Other 189 TOTAL CA 5573 Fixed assets 5024 TOTAL ASSETS 10597 Accounts payable 4713 Short term debt 78 TOTAL CL 4790 LT debt 921 Shareh. Equity 4886 TOTAL LIAB. AND SHARH. EQUITY 10597 INCOME STATEMENT 2021 Sales 19418 COGS 13136 Depreciation 354 SG&A 4952 EBIT 976 Interest Expenses 52 Tax 268 Net income 656 Determine the NLF, NSF and the liquidity ratio…
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Princeton's detailed age analysis of trade receivables at 31 December 2020 shows the following:Customer nameTotal outstandingCredit limit0-30days31-60days61-90daysOver 90 days£ £ £ £ £ £A Ames 16 200 15 000 2 000 8 700 2 500 3 000B Bristow 18 300 25 000 18 300C Chen 4 700 4 800 2 000 2 700TOTAL 39 200 - 20 300 10 700 5 200 3 000Notes:• The company offers 30 days credit to its customers.• The credit is offered to the customers based on words of mouth• Ames is disputing the quality of some of the goods and refusing to pay, no decision hasbeen made yet (£3,000 over 90 days)• Chen has just put in an order for £5,000, he is a good friend of the directorRequired:What are the key points arising from the credit controller's review in respect of each trade receivable balance and what suggestions can be made to improve the aged analysis report