Mickey Company reported the following figures: 2021 2020 RM572,000 RM600,000 Net Credit Sales Account receivables at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mickey Company reported the following figures: 2021 2020 RM572,000 RM600,000 Net Credit Sales Account receivables at end of year RM38,700 RM46,100 Required: 1) Compute Mickey's collection period of receivables for 2021. (Round to the nearest day) 2) Suppose Mickey's normal credit terms for a sale on account are "2/10, n/30". How well does Mickey's collection period compare to the company's credit terms? Is this good or bad for Mickey Company? Mickey Company reported the following figures: 2021 2020 RM572,000 RM600,000 Net Credit Sales Account receivables at end of year RM38,700 RM46,100 Required: 1) Compute Mickey's collection period of receivables for 2021. (Round to the nearest day) 2) Suppose Mickey's normal credit terms for a sale on account are "2/10, n/30". How well does Mickey's collection period compare to the company's credit terms? Is this good or bad for Mickey Company?
Expert Answer:
Answer rating: 100% (QA)
Requirement 1 Computation of Mickeys collection period of receivables for 2021 A... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Posted Date:
Students also viewed these accounting questions
-
The accountant for Steele Company reported the following accounting treatments for several purchase transactions (FOB shipping point) that took place near December 31, 2012, the companys year-end:...
-
At December 31, 2012, Sugarland Company reported the following on its comparative balance sheet, which included 2011 amounts for comparison (adapted, with all amounts in millions except par value per...
-
Suppose Tree City Sporting Goods Company reported the following data at July 31, 2016, with amounts in thousands: Use these data to prepare Tree City Sporting Goods Company's single-step income...
-
Consider the following types of images: i. Real, inverted and highly diminished image. ii. Real, inverted and enlarged image. iii. Virtual, erect and enlarged image. iv. Virtual, erect and diminished...
-
Find Missing Data for Profit Variance Analysis Required Find the values of the missing items (a) through (q). Assume that the actual sales volume equals actual production volume. (There are no...
-
Find an equation for a circle satisfying the given conditions. (a) Center (-7, -1), radius of length 9 / 5 (b) Center (0, 3), diameter of length 5
-
Kelley (1992, 1998) outlined types of followers as: A. Sheep, or yes, people. B. Alienated followers. C. Effective, or exemplary, followers. D. All of the above.
-
The trial balance of Creative Child Care does not balance. The following errors are detected: a. Cash is understated by $1,400. b. A $3,900 debit to Accounts Receivable was posted as a credit. c. A $...
-
A supplier to Home Depot has the following data: Sales $ 1,190,000 Cost of goods sold 476,000 Gross margin $714,000 Less operating expenses: Fixed $39,000 Variable 357,000 396,000 Operating income $...
-
Kitchen World Inc. is a Canadian controlled private corporation (CCPC) that operates a retail business selling cooking utensils, knives and small appliances for both professional chefs and home...
-
A company selling licenses for new e-commerce computer software advertises that firms using this software obtain, on average during the first year, a yield of 11% on their initial investments. A...
-
Storey Co. adds material at the start of production. February information for the company follows (SEE PICTURE BELOW): 28. What are the equivalent units for material using the weighted average...
-
Most of the growth in U.S. real GDP since 2001 can be attributed to: 1. growth in the labor force. 2. discovery of new natural resources. 3. increased labor productivity. 4. increased government...
-
Consider the market impacts of housing assistance programs. Suppose the government introduces a new housing voucher program to all renters. (a) in a market with perfecty inelastic supply, who...
-
GIVEN: INVESTMENT-250,000 ANNUAL NET CASH INFLOWS-100,000 COST OF CAPITAL-10% SALVAGE VALUE-10,000 (does not change from year 1 to 5) ECONOMIC LIFE-5 YEARS Tax rate-30% Working capital requirement...
-
How the changing business environment leads to changes in customers,quality and value,production,inventory management and cost reduction plans.?
-
c) What is the probability of observing 38 Hs in 52 trials
-
Consider the combustion of methanol below. If 64 grams of methanol reacts with 160 grams of oxygen, what is the CHANGE in volume at STP. 2CH3OH(g) + 3O2(g) 2CO2(g) + 4H2O(1) The volume decreases by...
-
What is total stockholders equity for Sportplace, Inc.? a. $709,900 b. $704,200 c. $638,000 d. $715,600 e. None of the above These account balances at December 31 relate to Sportplace, Inc.: $ 51,700...
-
Purchasing a laptop computer on account will a. Have no effect on stockholders equity. b. Increase total liabilities. c. Increase total assets. d. All of the listed choices are correct.
-
Preferred stock is least likely to have which of the following characteristics? a. Preference as to assets on liquidation of the corporation b. The right of the holder to convert the shares to common...
-
The following information is taken from the records of Cramer Corporation on March 31 of the current year. The accounts and balances needed to complete this problem are provided in the Working...
-
Use the working papers from Application Problem 20-2 to complete this problem. Instructions: Prepare a statement of cost of goods manufactured for Cramer Corporation. The statement is for the month...
-
The following information is taken from the records of Simmons Corporation on May 31 of the current year. The accounts and balances needed to complete this problem are provided in the Working Papers....
Study smarter with the SolutionInn App