Computing and Interpreting the Receivables Turnover Ratio A recent annual report for Dell, Inc., contained the following

Question:

Computing and Interpreting the Receivables Turnover Ratio
A recent annual report for Dell, Inc., contained the following data:

(dollars in thousands) Current Year Previous Year Accounts receivable Less: Allowance for doubtful accounts Net accounts

Required:
1. Determine the receivables turnover ratio and average days sales in receivables for the current year.
2. Explain the meaning of eachnumber.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 978-0078111020

7th Edition

Authors: LibbyShort

See More Books

Question Posted: Dec 12, 2011 07:48 AM

See More Questions

Computing and Interpreting the Receivables Turnover Ratio A recent annual report for FedEx contained the following data: Required: 1. Determine the receivables turnover ratio and average days sales...
Computing and Interpreting the Gross Profit Percentage Net sales for the period was $45,000 and cost of sales was $28,000. Compute the gross profit percentage for the current year. What does this...
Computing and Interpreting the Current Ratio Calculate the current ratio for Sals Pizza Company at the end of 2007 and 2008, based on the following data: What does the result suggest about the...
George operates a business that generated adjusted gross income of $250,000 and taxable income of $170,000 this year (before the domestic production activities deduction). Included in income was...
Ink Jet Printing reported the following partial list of accounts: 1. Identify the assets (including contra assets) and liabilities. 2. Classify each asset and each liability as current or long term....
What are the two main components of the required rate of return on equity securities?
In the open wire loop of Figure P28.25, end 1 is held at a higher electric potential than end 2. (a) In which direction do electrons move through the loop? (b) What is the direction of the current?...
1. Jeanie acquires an apartment building in 2003 for $260,000 and sells it for $500,000 in 2014. At the time of sale there is $78,000 of accumulated straight-line depreciation on the apartment...
a) Money markets are used to trade debt securities and instruments with maturities of less than one year. Identify three characteristics of the money market. (6 marks) b) Explain four reasons for the...
Find the transfer function, G(s) = 2 (s)/T(s), for the rotational mechanical system shown in Figure P2.22. 500 N-m-s/rad N3 = 25 100 kg-m? 3 kg-m? N1 = 5 300 N-m/rad 3 N-m/rad N2 = 50 150 kg-m?
Recording, Reporting, and Evaluating a Bad Debt Estimate During 2011, Dorothys Ceramics Shop had sales revenue of $70,000, of which $25,000 was on credit. At the start of 2011, Accounts Receivable...
Interpreting the Effects of Sales Declines and Changes in Receivables on Cash Flow from Operations Stride Rite Corporation manufactures and markets shoes under the brand names Stride Rite, Keds, and...
What issues need to be considered when making the switch from a manual accounting system to a computerised accounting system?
Compare the source code and assembly code for a moderate-size program. (Most C compilers will provide an assembly language listing with the -S flag.) Can you trace the high-level language statements...
You and a child are standing on a bathroom scale, which uses compression of a spring to measure the force exerted by your feet on the scale. What happens to the scale reading as you lift the child...
Explain why you cannot cause Earth to accelerate very much, even if you jump up and down on it.
When a steel ball and a soft rubber ball are dropped from the same height onto a concrete surface, the steel ball bounces higher. When they are dropped onto packed sand, however, the rubber ball...
A piece of salami is squashed between two pieces of bread. Is there one interaction between the salami and bread or more than one?
Assume that the expenditure and tax multipliers can be estimated at 0.75 and 0.5, respectively. a) Would you recommend expansionary fiscal policy based on tax cuts or increased government...
Citing a scientific article, explain in your own words, how DNA fingerprinting has been used in forensic science to solve crimes and why it may not always be accurate or effective.
Write a chemical equation for solid zinc hydrogen carbonate decomposing to yield solid zinc carbonate, water, and carbon dioxide gas.
On December 31, 2011, Stitch Company had 1,300,000 shares of $5 par common stock issued and outstanding. The stockholders equity accounts at December 31, 2011, had the balances listed here. Common...
The ledger of Zeta Corporation at December 31, 2012, after the books have been closed, contains the following stockholders equity accounts. Preferred Stock (10,000 shares issued)...
Melvina Corporation has been authorized to issue 20,000 shares of $100 par value, 7%, noncumulative preferred stock and 1,000,000 shares of no-par common stock . The corporation assigned a $5 stated...
Why are gains/losses added back to (or deducted from) the cash from operations section of a cash flow statement?
Combination A, B, C, and F is the fifth most valuable with an NPV of $169,000. how did you came up with it?
Using a suitable example explain how you would check that equipment is ready for shut down to commence?

Computing and Interpreting the Receivables Turnover Ratio A recent annual report for Dell, Inc., contained the following

Question:

(dollars in thousands) Current Year Previous Year Accounts receivable Less: Allowance for doubtful accounts Net accounts receivable Net sales (assume all on credit) $6,064,000 $ 4,843,000 103.000 $ 4,731,000 $61,101,000 $5,961,000

Step by Step Answer:

Req 1 Receivables turnover Net Sales 61101000 1143 times Average Net Trade Accounts Receiva...View the full answer

Financial Accounting

Students also viewed these Accounting questions