Financial statement data for years ending December 31 for Cinderella Company follow: a. Determine the accounts receivable
Question:
Financial statement data for years ending December 31 for Cinderella Company follow:
a. Determine the accounts receivable turnover for 20Y9 and 20Y8.
b. Determine the days’ sales in receivables for 20Y9 and 20Y8. Use 365 days and round to one decimal place.
c. Does the change in accounts receivable turnover and the days’ sales in receivables from 20Y8 to 20Y9 indicate a favorable or unfavorable change?
20Υ9 20Y8 Sales $9,525,000 $7,616,000 Accounts receivable: Beginning of year End of year 715,000 785,000 645,000 715,000
Step by Step Answer:
A Accounts Receivable Turnover Net Credit sales Average account R...View the full answer
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
Related Video
Days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale. DSO is often determined on a monthly, quarterly, or annual basis. To compute DSO, divide the average accounts receivable during a given period by the total value of credit sales during the same period and multiply the result by the number of days in the period being measured.
Students also viewed these Business questions
-
Financial statement data for years ending December 31 for Latchkey Company follows: a. Determine the ratio of sales to assets for 2016 and 2015. b. Does the change in the ratio of sales to assets...
-
Financial statement data for years ending December 31 for Edison Company follows: a. Determine the ratio of sales to assets for 2016 and 2015. b. Does the change in the ratio of sales to assets from...
-
Financial statement data for years ending December 31 for Holland Company follows: a. Determine the inventory turnover for 2016 and 2015. b. Determine the number of days' sales in inventory for 2016...
-
Make a balance sheet for the following data- One Time Start-Up Costs: Rent Deposit $4,000 Furniture & Fixtures $8,000 Equipment $6,000 Buildout/ Renovations $10,000 Decorating, Painting and...
-
A circle of radius 798.25 ft, centered at point A, intersects another circle of radius 1253.64 ft, centered at point B. The X and Y coordinates (in feet) of A are 3548.53 and 2836.49, respectively,...
-
Tartini Telecom, Inc. files U.S. corporate tax returns and is subject to a 21% income tax rate. The company reports no book tax differences. Tartini provides you with the following income...
-
Paired data are data for which each value in one sample can be matched with a corresponding value in another sample. In Exercises 5 and 6, determine whether the statement is true or false. If the...
-
Apachi Company ended its fiscal year on July 31, 2011. The companys adjusted trial balance as of the end of its fiscal year is as shown at the top of page 186. Instructions (a) Prepare the closing...
-
Complete the following table and perform any necessary calculations. (Hint: Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to the nearest two...
-
1. Identify possible causes that could explain Intertechs declining profitability. What steps can the Stadlens take to reverse this alarming trend? 2. What can the Stadlens do to manage their...
-
Determine the due date and the amount of interest due at maturity on the following notes: Date of Note Face Amount Interest Rate Term of Note January 10 $40,000 90 days a. 5% b. March 19 180 days...
-
Maggiano Supply Company received a 120-day, 6% note for $420,000, dated June 12, from a customer on account. a. Determine the due date of the note. b. Determine the maturity value of the note. c....
-
Specify the practical lesson from the Hofstede cross-cultural study.
-
discuss the role of integrity as a guiding principle in ethical leadership, where leaders are tasked with balancing the pursuit of organizational goals with the responsibility to act with honesty,...
-
How do societal and cultural norms intersect with personal integrity, shaping individual perceptions of ethical conduct and influencing the ethical standards upheld within professional contexts ?
-
Imperial Jewelers manufactures and sells a gold bracelet for $ 4 0 8 . 0 0 . The company s accounting system says that the unit product cost for this bracelet is $ 2 6 3 . 0 0 as shown below: Direct...
-
Chuck Wagon Grills, Incorporated, makes a barbecue grill it sells for $210. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory...
-
The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune - up is given below: Standard Hours ...
-
Selected information follows for Cathrea Select Corporation at December 31: Additional information: 1. Principal payments on the mortgage payable were $25,000. 2. A building was purchased for...
-
Find a least expensive route, in monthly lease charges, between the pairs of computer centers in Exercise 11 using the lease charges given in Figure 2. a) Boston and Los Angeles b) New York and San...
-
For each item below, indicate to which category of elements of financial statements it belongs. (a) Retained earnings (b) Sales (c) Additional paid-in capital (d) Inventory (e) Depreciation (f) Loss...
-
For each item below, indicate to which category of elements of financial statements it belongs. (a) Retained earnings (b) Sales (c) Additional paid-in capital (d) Inventory (e) Depreciation (f) Loss...
-
For each item below, indicate to which category of elements of financial statements it belongs. (a) Retained earnings (b) Sales (c) Additional paid-in capital (d) Inventory (e) Depreciation (f) Loss...
-
b) Average Collection Period Gross revenue 16,000,000 Avg. receivables before new policy 876,712 % paying early 40.0% Avg. receivables after new policy Note: customers must pay within 20 days of...
-
Josh started Sweet and Sour tea after a visit to Alabama, where he discovered the brewing market for the drink. John performed market research and determined that the tea can be sold in two formats:...
-
IT Solutions Ltd . has a cash - settled SARs program for employees. These employees will receive a cash payment after five years of service, calculated as the excess of share price over $ 8 . 7 5 ....
Study smarter with the SolutionInn App