00 LO %24 JE Use the following information for this and the next three questions. Southern Mountain Outfitters, Inc. (SMO) has a gross profit margin of 30% on sales of $9,000,000. All its sales are on credit. Its balance sheet shows that Current Assets = $2,000,000; Current Liabilities= $3,000,000; and Accounts Receivables = $500,000. The inventory turnover for the company is 9 times. %3D %3D What is the average collection period for SMO? O 18.00 O 14.40 20.28 25.35 QUESTION 28 What is the amount of inventory for SMO? O $800,000 $2,700,000 O $700,000 O $7,200,000 QUESTION 29 If only 80% of the sales are credit, what is the average collection period for SMO? (Hint: The revised Receivable Turnover Ratio = Credit Sales / Accounts Receivable) O 20.28 O 18.00 14.40 O 25.35 QUESTION 30 Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Air 0唱 F3 esc 000 000 F1 DD F2 F4 F5 F8 # - 2 4 3. R. 一 >
00 LO %24 JE Use the following information for this and the next three questions. Southern Mountain Outfitters, Inc. (SMO) has a gross profit margin of 30% on sales of $9,000,000. All its sales are on credit. Its balance sheet shows that Current Assets = $2,000,000; Current Liabilities= $3,000,000; and Accounts Receivables = $500,000. The inventory turnover for the company is 9 times. %3D %3D What is the average collection period for SMO? O 18.00 O 14.40 20.28 25.35 QUESTION 28 What is the amount of inventory for SMO? O $800,000 $2,700,000 O $700,000 O $7,200,000 QUESTION 29 If only 80% of the sales are credit, what is the average collection period for SMO? (Hint: The revised Receivable Turnover Ratio = Credit Sales / Accounts Receivable) O 20.28 O 18.00 14.40 O 25.35 QUESTION 30 Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Air 0唱 F3 esc 000 000 F1 DD F2 F4 F5 F8 # - 2 4 3. R. 一 >
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 9P: Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were 4,562,500 and...
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A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:00
LO
%24
JE
Use the following information for this and the next three questions.
Southern Mountain Outfitters, Inc. (SMO) has a gross profit margin of 30% on sales of $9,000,000. All its sales are on credit. Its balance sheet shows that
Current Assets = $2,000,000; Current Liabilities= $3,000,000; and Accounts Receivables = $500,000. The inventory turnover for the company is 9 times.
%3D
%3D
What is the average collection period for SMO?
O 18.00
O 14.40
20.28
25.35
QUESTION 28
What is the amount of inventory for SMO?
O $800,000
$2,700,000
O $700,000
O $7,200,000
QUESTION 29
If only 80% of the sales are credit, what is the average collection period for SMO? (Hint: The revised Receivable Turnover Ratio = Credit Sales / Accounts
Receivable)
O 20.28
O 18.00
14.40
O 25.35
QUESTION 30
Click Save and Submit to save and submit. Click Save All Answers to save all answers.
MacBook Air
0唱
F3
esc
000
000
F1
DD
F2
F4
F5
F8
# -
2
4
3.
R.
一
>
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