Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING SUNDRY DEBTORS OMR 20000 CLOSING SUNDRY DEBTORS OMR 10000 What will be the average debtors? O a. OMR 15000 O b. OMR 7500 O c. OMR 30000 O d. OMR 10000

Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING SUNDRY DEBTORS OMR 20000 CLOSING SUNDRY DEBTORS OMR 10000 What will be the average debtors? O a. OMR 15000 O b. OMR 7500 O c. OMR 30000 O d. OMR 10000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 3P

See similar textbooks

Related questions

Q: The total current debts is Php500,000.00 while the total liquid assets is Php300,000.00. What is the…

A: Solution Liquidity ratio Measure a company's ability to pay debt obligations and its margin of…

Q: Questions: Determine the following: 1. The gross sales for the year. a P1,000,000 b. P1,030,000 2…

A: Sales and purchases are an integral of every organization. Both Sales and Purchases can be done by…

Q: Compute total income from the following? Gross Profit OMR 15000, Rent Paid OMR 3000, Commission…

A: The income is calculated as difference between total revenue and other expenses.

Q: Using the following data, complete the balance sheet given below: Gross profit. Rs.54,000…

A: Gross Profit Margin %= Gross margin/ Sales

Q: Calculate net profit from the following? Net sales OMR 100000, Cost of goods sold OMR 40000, Rent…

A: Gross profit = sales - cost of goods sold = 100000 - 40000 = OMR 60000

Q: la given below. Income Statements for the years ending 31 December 2018 2019 £000 £000 £000 £00C…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Current Asset 120 000 Cash…

A: Current Ratio = Current Assets / Current Liabilities Quick Ratio = (Current Assets -Inventory)…

Q: 4

A: Balance of Trade is the difference between exports and imports of physical goods. It does not…

Q: Q9: You have the following data :Operating income 30,000 ID, interest revenue 5,000 ID, interest on…

A: Net profit before tax = Operating Income + Interest Revenue - Interest on notes and bonds + Rental…

Q: Use the given financial information of BAB's Industry below. Average Accounts Receivable P90,000.00…

A: Net Sales = P2,000,000 Gross profit margin = 25% Gross profit = Net Sales x Gross profit margin

Q: The following table shows some selected financial information of ABC Company. Sales 54000 Net Profit…

A: Net profit margin is the percentage that shows the profit earned compared to the net sales made…

Q: Mazaya Company has the following information available Net Income RO 55.000, Cash Provided by…

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: Determine the amount of gross profit and sales from the followings: Debtors Turnover Ratio = 4…

A: Debtors Turnover Ratio is Net credit sales divided by average account receivable. Since, information…

Q: Given the data for Michele LLC, - Cash in hand RO 5000, account receivable RO 3000, inventory RO…

A: Current ratio shows the relationship between current assets and current liabilities. There is only…

Q: 1. Current assets is P20,000, current liabilities is P30,000. What is the current ratio? 2.…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Required: Analyse the scenarios below and provide brief explanation for your analysis. 1. In year…

A: Ratio analysis is an art as well as science, because it helps to aalayse the financial position in a…

Q: 1. What amount of accounts receivable wa 2020? a, 35,000 b. 30,000 c. 15,000 d. 10,000 2. What…

A: 1. The amount of Account Receivable written = Actual expense affecting accounts receivable -…

Q: PROBLEM5. Following data represents the ratio pertaining to X Co. Ltd. for the year ending 31st…

A: Statement of Financial Position: When a company's assets, liabilities, and equity are all…

Q: Example: Calculate quick/liquid ration from the following: RO 400,000 RO 160,000 RO 80,000 RO…

A: The quick ratio is the financial ratio that measures the ability of the company to pay off its…

Q: fyou have the following information Sales 250,000 Cost of goods sold 260,000 Gross loss (10000)…

A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Q: V. Direction: Solve the following problems using financial ratios. Write the answer on the blank. 1.…

A: Current ratio = Current assets/Current liabilities

Q: What will be the average debtors? a. OMR 30000 b. OMR 10000 c. OMR 15000 d. OMR 7500

A: Debtors are the current assets of the firm. Debtors represent the individuals who owe money from the…

Q: If EBITDA to sales ratio is 40%, sales are 100000 OMR, debt is 10000. The debt to EBITDA is equal…

A: SOLUTION- FORMULAS- 1- EBITDA TO SALES RATIO = EBITDA / SALES 2- DEBT TO EBITDA = DEBT / EBITDA

Q: 2019: Profit Margin – Profit $1435 / Net Sales $38,464 = 0.037:1 OR 3.7% Working Capital – Current…

Q: From the following data, calculate (a) Gross profit ratio (b) Net profit ratio Sales RO 300,000…

A: Gross Profit Ratio = [ Gross Profit / Net Sales ] * 100 Net Profit Ratio = [ Net Profit / Net Sales…

Q: Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING…

A: Debtor means the amount due from customer to whom we made the credit sales.

Q: Compute total income from the following? Gross Profit OMR 10000, Rent Paid OMR 1000, Commission…

A: Formula: Total income = Gross profit - Rent paid + Commission received + Dividend received

Q: If the Merchandise inventory account balance on 12/31/19 was 40000 and its account balance on…

A: Cash flow statement is defined as the financial statement which summarizes the cash and cash…

Q: Determine Debtors turnover ratio if, closing debtors is GH¢ 40,000, Cash sales is 25% of credit…

A: Debtors Turn over Ratio = Credit Sales /Average Debtors

Q: Newark Company has provided the following information:Cash sales, $600,000Credit sales,…

A: First step is to compute the Gross sales revenue during the period which is sum total of Cash sales…

Q: 4.1.1 Gross margin 4.1.2 Inventory turnover 4.1.3 Acid test ratio

A: As per our protocol we provide solution to first three sub-parts only under a question but as you…

Q: Presented below are the information taken from the books of NMIXX Co 2022 2023 Sales Regular P…

A: Income statement is prepared by the business organizations so as to know how much amount of gross…

Q: Active Fast Berhad has the following income statement items for 2021: Revenue/Sales RM559,236…

A: Retained earnings = 100 - %of dividend of net profit = 100 %- 40% = 60% of profit after tax

Q: Given the following data; TOTAL PURCHASES 150000 CASH PURCHASES 45000 PURCHASE RETURN 5000 OPENING…

A: Creditors turnover ratio is used to analyse that how effectively payments can be made for the credit…

Q: Given the following data; TOTAL PURCHASES 150000 CASH PURCHASES 45000 PURCHASE RETURN 5000 OPENING…

A: The creditor turnover ratio calculates the relationship between the credit purchase and average…

Q: Given the following information: $8 million Average Inventory: $6 million Average A/R: Average Fixed…

A: The ratios are calculated as below-

Q: 2021 2020 2019 2018 2017 Current Ratio 0.95 times 1.3 times 1.1 times 1.2 times 1.3 times Days in…

A: The question is related to Ratio Analysis. The ratio are given for five years from 2017 to 2021. The…

Q: - Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000…

A: Debtor turnover ratio =Credit sales/Average debtor

Q: Revenue R100 000, Debtors (opening R50 000, closing R110 000), Calculate Cash Receipts from…

A: CASH RECEIPTS FROM CUSTOMERS : = OPENING DEBTORS + SALES - CLOSING DEBTORS

Q: Uptodate Projects Ltd has approached you to analyse and interpret their financial statements. The…

A: The question is based on the concept of Accounting Ratios.

Q: The following table shows some selected financial information of ABC Company. Sales 54000 Net Profit…

A: The net profit margin is calculated by dividing the net profits by the net sales.

Q: Assets (in KD) Liabilities (in KD) Cash 20000 Accounts payable 80000 100000 Accrued expenses 210000…

A: Net sales are 900000 Propert plants and equipments are 1500000 Amortization expense are off 50,000…

Q: The profit on consignment is

A: Profit on Consignment is the net amount of money earned from consignment of goods

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING SUNDRY DEBTORS OMR 20000 CLOSING SUNDRY DEBTORS OMR 10000 What will be the Debtors Turnover Ratio (DTR)? a.16 b.6 c.5 d.8
Match the following measurements with the terms below: Question 15 options: 12345 cash conversion efficiency ratio 12345 economic ordering quantity 12345 credit terms 12345 net working capital 12345 days of working capital 1. 5.1% 2. 47.2 days 3. 1/10, n/30 4. $200,000 5. 700 units
Consider the following information for a given business. Sale revenue =GHS40,000 VC per unit =GHS20 Activity level =1,000 to break even Required: 1. Determine the TFC 2. Express the contribution as a percentage of sale. 3. The company plans to sale 1,500 unit in the next period. What will be the percentage margin of safety (MoS) 4. What margin should the business employ for planning purposes? 5. What total profit should the business expect in order to achieve it's planned sales?
Question: Sales: $100 000 Purchase: $45 000 Sales returns: $20 000 Purchase returns: $5 000 Current Assets: $55 000 Current Liabilities:$5000 required: a) Calculate net sales. b) Calculate net purchases. c) Calculate working capital.
Consider a firm with a 2010 revenue of S60 million and cost of goods sold of $25 million lf the balance shert amount show $4million of inventory and $1.5 million ofproperty, plant & equipment how many weeks of suppiy does the fim bolat(2 weeksinoneyear)(use 2 decimals)Select oneO a.8.33O b.6.25Oc 13.75O d. 400Oe 12.50
Using Goal Seek/Solver and/or What-If Scenarios based on the below income statement, calculate the following a) the sales amount in order to realize $1,200,000 of net income without changing any of the expense accounts. b) to realize $1,200,000 without changing revenues and cost of goods sold. c) What could be the best scenario to achieve NI $1,200,000.
Net sales OR 207000 Cost of the goods sold OR 165000 Closing Stock OR 8700 Details Debit Credit Salary 6500 Rent 14200 Interest Payable 750 Stationery 870 Insurance 1850 Dividend 900 What will be the Net Profit? Select one: a. RO 10030 b. RO 10780 c. RO 19480 d. RO 20230
SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…
GB SalesRevenue 16800 Purchases 12800 Gross Profit 4000 Selling Expenses 2000 Admin Cost 7200 Operating Loss 5200 b) Calculate mark-up (in percentage to 2 decimal places) c) Calculate the margin as a % to 1 decimal place d) What is the operating profit margin percentage if the admin cost is reduced by 60%? Show this to 1 decimal place e) Define the following and provide respective examples with numeric calculations where possible: Trade discountBulk discountEarly settlement discount f) If a company has a mark-up of 37% and sales revenue of £163,970, then what is the cost of sales in whole £’s? g) If a company has a net margin of 15%, gross margin of 35% and costs of sale of £25,000, then what is the sales revenue and overhead?
Choose the correct letter of answer and provide a solution. Thanks The financial ratios of a firm are as follows: Current Ratio=1.33; Acid-test ratio=0.80; Current liabilities=P40,000.00; Inventory turnover ratio=6 times. What is the sales/cost of good sold of the firm? *a. P57,200.00b. P77,200.00c. P97,20000d. P117,200.00e. P127,200.00
et sales OMR 175000 Cost of the goods sold OMR 135000 Details Debit Credit Salary 15000 Rent 8500 Drawings 3500 Building 10000 General expenses 2300 Rent 2500 Cash 4500 Repairs 750 Capital 1500 Insurance 3500 Dividend 1600 Interest 1200 From the above information, Calculate net profit/loss. Select one: a. Net Loss 1250 b. Net Loss 24350 c. Net Profit 15250 d. None of the options e. Net Profit 12850