Answered: Nicole Company has an average…

Nicole Company has an average collection period of 52 days and accounts receivables of P250,000. What are Nicole's annual sales? *

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

See similar textbooks

Related questions

Q: Abbot Communications has annual credit sales of $1,800,000 and accounts receivable of $190,000. What…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Candle Shop, Inc. has net sales on account of $1,700,000. The average net accounts receivable are…

A: Accounts receivable turnover ratio = Net credit sales / Average Accounts Receivables where, Average…

Q: Pine Hardware Store had net credit sales of P6,045,000 and cost of goods sold of P5,000,000 for the…

A: Solution:- Introduction:- Accounts receivables turnover ratio measures the number of times per year…

Q: What is its average collection period?

A: Companies sold their products on cash as well as credit. Credit sales are recorded as receivables or…

Q: In October, Z-Mart had $475,000 in net credit sales and $75,000 in accounts receivable. Calculate…

A: The account receivables turnover ratio is calculated as net sales divided by account receivables.…

Q: Nock Inc. has a Days Inventory Outstanding of 13, an Accounts Receivable $128, an Average Sales per…

A: Cash Conversion Cycle is a method used by the management and it can be calculated as follows, =Days…

Q: A company has net income of 213,700 a profit margin of 7.1 percent, and an accounts receivable…

A: Net income = 213,700 Profit margin = 7.1% Sales = Net income/Profit margin = 213700/0.071…

Q: A company has net income of $195,000, a profit margin of 8.3 percent, and an accounts receivable…

A: Net Income = 195,000 Profit Margin = 8.3% Accounts Receivables = 134,370 Credit Sales = 70% of sales…

Q: Medwig Corporation has a DSO of 20 days. The company averages $3,500 in sales each day (all…

A: Accounts receivables are the money due towards the customers but not yet paid. The accounts…

Q: If Cactus, Inc. has annual sales of $83,000, average accounts payable of $30,000, and average…

A: Given: Annual sales = $83,000 Average accounts receivables = $25,000

Q: The total of Accounts Receivable is $1000 while the Annual Sales is $7000. The Days Sales…

A: The days of sales outstanding is the number of days the company on average takes to collect the…

Q: If a firm has sales of $25,689,00 a year, and the average collection period for the industry is 45…

A: We often convert the receivables turnover ratio into days and call it the average collection…

Q: Tulips Companý has a DSO of 40 days, and its annual sales are P7,300,000. What is its accounts…

A: ANSWER 1)DSO=40 ANNUAL SALES=7300000 NUMBER OF DAYS IN A YEAR=365 DSO = (ACCOUNT RECEIVABLE/ANNUAL…

Q: Kelly’s Jewelry has the following transactions during the year: total jewelry sales = $750,000;…

A: Formula to calculate net sales: Net sales = Sales - sales discount - sales returns - sales…

Q: A firm has $400,000 in credit sales and $100,000 in accounts receivable.Compute accounts receivable…

Q: Winther Company has a receivables turnover of 15 times. The average net receivables during the…

A: Winther company's Receivable turnover = 15 Average net receivables = P430000 Average net receivable…

Q: A company has annual sales of $730 million. If its DSO is 35, what isits average accounts…

A: Calculation of average receivables: Answer: Average account receivables are $70 million.

Q: A firm has sales of $1.6 million, and 25 percent of the sales are for cash. The year-end accounts…

A: Average collection period is the time taken by the company to collect the funds from its…

Q: Tulips Company has a DSO of 40 days, and its annual sales are P7,300,000. What is its accounts…

A: Accounts receivables are the average amount of money to be charged on credit by the consumers who…

Q: Al Sharif Company's Average Accounts Receivables is OMR 360,000 and total Sales is OMR 1,200,000.…

A: Credit sale=Total sale×100-Cash sale %=OMR 1,200,000×100-40%=OMR 720,000

Q: Bulldogs Inc. had credit sales last year amounted to P18,600,000. The firm also had an average…

A: Solution.. Credit sales = P18,600,000 Average accounts receivable = P1,380,000 Average collection…

Q: During the year Tulip reported net sales of $960,000. The company had accounts receivable of $75,000…

A: Average accounts receivable = (Beginning accounts receivable + Ending accounts receivable)/2…

Q: Baxley Brothers has a DSO of 20 days, and its annual sales are $10,585,000. What is its accounts…

A: The formula for daily sales outstanding can be used here to calculate the accounts receivable.The…

Q: Pine Hardware Store had net credit sales of $6,500,000 and cost of goods sold of $5,000,000 for the…

A: Solution.. Net credit sales = $6,500,000 Beginning accounts receivable = $600,000 Ending…

Q: Company Abel has total sales of $375,000, of which, $125,000 represents cash sales. Its annual…

A: Accounts receivable is the amount of money not paid by customers that is due to the organization for…

Q: Nicole Company has an average collection period of 52 days and accounts receivables of P250,000.…

A: Average Debtors collection period = Trade Receivables / Total Sales x 365 Days Note : Here, No. of…

Q: Ammer Products has an average accounts payable balance of $850,000 and its annual cost of goods sold…

A: Deferrals: Deferrals are the revenues that are received but not earned, and expenses that are paid…

Q: Greene Sisters has a DSO of 20 days. The company’s average daily salesare $20,000. What is the level…

A: Receivable Turnover Ratio = No. of days in a year / Day's sales outstanding (DSO) Receivable…

Q: TMRW Co. has annual credit sales of $1,080,000 and an average collection period of 32 days in 2010.…

A: 1. TMRW Co.- Average accounts receivable balance = (Annual Credit Sales / 360 days) x Average…

Q: The annual sales of a company are $47,000 including sales tax at 17.5%. Half of the sales are on…

A: We have the following information: Annual sales of the company: $47,000 Half of the sales are on…

Q: If we know that for the year 2010 Johnson's Company had Cost of goods sold = 600,000 USD and Sales…

A: Given that, Sales (on credit) = 850,000 USD Opening accounts recievables = 75,000 USD Closing…

Q: Medwig Corporation has a DSO of 38 days. The company averages $3,250 in sales each day (all…

A: Days sales outstanding (DSO) is the number of days the firm takes to collect cash from sales .…

Q: Baxley Brothers has a DSO of 23 days, and its annual salesare $3,650,000. What is its accounts…

A: Day sales outstanding=23 daysAnnual sales=$3,650,000Days per year=365 days

Q: The Malibu Corporation has annual credit sales of $36 million. The average collection period is 38…

A: Ratio is a tool which is used to evaluate the growth and performance of the firm by establish the…

Q: A company has annual sales of $5,210,000 and its average daily accounts receivable is $377,000. What…

A: given that, annual sales = $5210000 average daily accounts receivables = $377000 365 days per year…

Q: Medwig Corporation has a DSO of 17 days. The company averages $8,500 in sales each day (all…

A: Days sale outstanding(DSO)/Average collection period(ACP) tells a firm on an average time taken by…

Q: B&B Mining has a DSO of 40 days, and its annual sales are 7,300, 000. What is its accounts…

A: Daily sales outstanding (DSO) = 40 Days Annual sales = 7,300,000 Number of days in a year = 365 Days

Q: Camden Hardware’s credit sales for the year were $320,000. Accounts receivable at the beginning and…

A: Accounts Receivable Turnover: The accounts receivable turnover ratio determines the ability of a…

Q: A company has net income of $182,000, a profit margin of 9.90 percent, and an accounts receivable…

A: Days sales in receivables = Accounts receivable/credit sales *365

Q: The QYU, Inc. has sales of P5 million per year (all credit) and an average collection period of 35…

Q: Blue Air Inc., has net sales of $767,000 and accounts receivables of $162,000. What are the firm's…

A: We have the following information: Net Sales: $767,000 Accounts Receivables: $162,000

Q: Rayhan Company has an average collection period of 55 days. The annual sales is 8,500,000. What is…

A: The average collection period indicates the period between the sale and collection/ receipt of money…

Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Nicole Company has an average collection period of 52 days and accounts
receivables of P250,000. What are Nicole's annual sales? *

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 3

VIEW

Step by step

Solved in 3 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, finance and related others by exploring similar questions and additional content below.

Similar questions

Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. Required: Note: 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.
Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?
Fitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: 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.
Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May, and June if 60% of sales are collected in the month of sale, 30% are collected the month after the sale, and 10% are collected the second month after the sale?
Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
Montalcino Company had net sales of 54,000,000. Montalcino had the following balances: Required: Note: 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.
Nonnas Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February?
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?
Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?