Urmila ben Richards & James is a multinational corporation that manufactures and markets many household products. Last year, sales for thecompany were $71,000 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that90 percent of sales were on credit. The average gross profit on sales was 45 percent. Additional account balances were:Accounts receivable (net)InventoryAccounts receivableInventoryRequired:1. Compute Richards & James' receivable turnover ratio and its inventory turnover ratio. (Round intermediate calculations to thenearest whole dollar. Round your answers to 2 decimal places.)Ending$7,5006,825TurnoverTo collect accounts receivableTo sell inventoryBeginning$6,1006,3052. How many days does it take for the company to collect its accounts receivable and sell its inventory? (Use 365 days in a year.Round your answers to 2 decimal places.)Days

Account receivable Turnover ratio = Net credit sales/Average account receivable Average…

Richards & James is a multinational corporation that manufactures and markets many household products. Last year, sales for the company were $71,000 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that 90 percent of sales were on credit. The average gross profit on sales was 45 percent. Additional account balances were: Accounts receivable (net) Inventory Ending $7,500 6,825 Beginning $6,100 6,305 Required: 1. Compute Richards & James' receivable turnover ratio and its inventory turnover ratio. (Round intermediate calculations to the nearest whole dollar. Round your answers to 2 decimal places.)

Richards & James is a multinational corporation that manufactures and markets many household products. Last year, sales for the company were $71,000 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that 90 percent of sales were on credit. The average gross profit on sales was 45 percent. Additional account balances were: Accounts receivable (net) Inventory Ending $7,500 6,825 Beginning $6,100 6,305 Required: 1. Compute Richards & James' receivable turnover ratio and its inventory turnover ratio. (Round intermediate calculations to the nearest whole dollar. Round your answers to 2 decimal places.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

See similar textbooks

Similar questions

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.
Whalen Company had net sales of 125,500,250,000. Whalen had the following balances: Required: Note: Round answers to two decimal places. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in 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?
Tripod Company makes all sales on account. During the current year, Tripod has an average accounts receivable balance of $60,000, an average inventory balance of $96,000, cost of goods sold of $345,000, and net income of $117.000. If Tripod's gross margin percentage is 42.5%, what was its average collection period? Round to one decimal point. O 18.3 days O 24.3 days O 30.4 days O 36.5 days O None of the above
Paul & Griffon manufactures and markets many products you use every day. In 2016, sales for the company were $93,000 (all amounts in millions). The annual report did not report the amount of credit sales, so we will assume that all sales were on credit. The average gross profit percentage was 51.2 percent. Account balances for the year follow: ts Beginning Ending Accounts receivable ЕВook $5,300 $5,700 (net) Inventory 6,080 6,100 Hint Required: Print 1. Compute the following turnover ratios. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. ferences Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the following turnover ratios. (Do not round intermediate calculations. Round your final answers to 1 decimal place.) Receivables Turnover Ratio Inventory Turnover Ratio 00
Twist Corp. has a current accounts receivable balance of $357,615. Credit sales for the year just ended were $2,936,600. a. What is the receivables turnover? b. What is the days' sales in receivables?
Valenzuela, Incorporated, has a cash cycle of 41.5 days, an operating cycle of 59.3 days, and an inventory period of 25.6 days. The company reported cost of goods sold in the amount of $465,000, and credit sales were $749,000. What is the company's average balance in accounts payable and accounts receivable? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Average accounts payable Average accounts receivable
Double West Suppliers (DWS) reported sales for the year of $725,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances are as follows: Accounts receivable (net) Inventory Beginning $28,000 43,000 Ending $72,000 57,000 Required: 1. Compute the turnover ratios for accounts receivable and inventory. (Round your answers to 1 decimal place.) Receivables turnover ratio Inventory turnover ratio times times 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. (Round your answers to 1 decimal place.) Days to collect Days to sell Check my work
heridan Company had net credit sales during the year of $1047750 and cost of goods sold of $484000. The balance in accounts receivable at the beginning of the year was $110400 and at the end of the year was $143600. What was the accounts receivable turnover?
Knight Roundtable Co. had annual credit sales of $1,080,000 and an average collection period of 32 days in 2018. Assume a 360-day year. What were the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period. Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 49,000 units per year, an ordering cost of $8 per order, and carrying costs of $1.60 per unit.
Larkspur Salon Supply Corporation had net credit sales during the year of $1100800 and cost of goods sold of $712000. The net accounts receivable at the beginning of the year was $117600 and at the end of the year was $138400. What was the accounts receivable turnover? 7.3 10.6 5.4 8.6
Bonita Corporationreported net credit sales of $3447600 for this year. The company had accounts receivable of $395000 at the beginning of the year. During the year, the only transactions to affect receivables were the credit sales and collections of $3353600. What was Bonita's average days to collect? (Use 365 days for calculation.) A. 8.7 days. B. 36.4 days C. 0418 days D. 46.8 days.