Presented in the left graph are trends in sales revenue and cash received from customers over...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Presented in the left graph are trends in sales revenue and cash received from customers over a six-year period. In the right graph are trends in cost of goods sold and cash paid for inventory over a six-year period. All inventory is purchased with cash. Sales Revenue vs. Cash Received from Customers Cost of Goods Sold vs. Cash Paid for Inventory $120,000 $450,000 $400,000 $100,000 $350,000 Sa0,000 $300,000 $250,000 $60,000 $200,000 $150,000 $40,000 $100,000 $20.000 $50,000 $0 So Year 1 2 3. 4 6. Year 1 2 3 Year -End Balance of Accounts Receivable Year -End Balance of Inventory + Sales Revenue Cost of Goods Sold + Cash Recei ved from Customers Cash Paid for Inventory Click here to open the graphs in a new tab. Required: 1. In Year 1, which is higher - Sales Revenue or Cash Received? In which year is it most likely the company had a large sale on account without cash being collected? 2. In which year does it appear the cash from that large sale on 3. account is collected? In a year that cash received from customers is greater than 4. sales revenue, the year-end balance of Accounts Receivable: 5. In Year 1, which is higher - Cost of Goods Sold or Cash Paid? In which year is it most likely the company had a large 6. purchase of inventory without it being sold? In which year does it appear the excess inventory was sold 7. without an additional cash purchases of inventory to replace it? In a year that cash paid for inventory is greater than cost of 8. goods sold, the year-end balance of Inventory: Presented in the left graph are trends in sales revenue and cash received from customers over a six-year period. In the right graph are trends in cost of goods sold and cash paid for inventory over a six-year period. All inventory is purchased with cash. Sales Revenue vs. Cash Received from Customers Cost of Goods Sold vs. Cash Paid for Inventory $120,000 $450,000 $400,000 $100,000 $350,000 Sa0,000 $300,000 $250,000 $60,000 $200,000 $150,000 $40,000 $100,000 $20.000 $50,000 $0 So Year 1 2 3. 4 6. Year 1 2 3 Year -End Balance of Accounts Receivable Year -End Balance of Inventory + Sales Revenue Cost of Goods Sold + Cash Recei ved from Customers Cash Paid for Inventory Click here to open the graphs in a new tab. Required: 1. In Year 1, which is higher - Sales Revenue or Cash Received? In which year is it most likely the company had a large sale on account without cash being collected? 2. In which year does it appear the cash from that large sale on 3. account is collected? In a year that cash received from customers is greater than 4. sales revenue, the year-end balance of Accounts Receivable: 5. In Year 1, which is higher - Cost of Goods Sold or Cash Paid? In which year is it most likely the company had a large 6. purchase of inventory without it being sold? In which year does it appear the excess inventory was sold 7. without an additional cash purchases of inventory to replace it? In a year that cash paid for inventory is greater than cost of 8. goods sold, the year-end balance of Inventory:
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Suppose that nominal GDP was $9500000.00 in 2005 in Fairfax County Virginia. In 2015, nominal GDP was $11500000.00 in Fairfax County Virginia. The price level rose 2.00% between 2005 and 2015, and...
-
Cash received from customers (LO 7) On January 1, 2014, Glass Industries' Accounts Receivable balance was $10,000; on December 31, 2014, it was $18,000. Sales revenue for the year was $145,780....
-
Cost of goods sold for Harlem Tool & Die during 20X1 was $400,000. Beginning inventory was $64,000 and ending inventory was $89,000. Beginning trade accounts payable were $13,000, and ending trade...
-
Grimm Company has 2,400,000 shares of common stock outstanding on December 31, 2014. An additional 150,000 shares of common stock were issued on July 1, 2015, and 300,000 more on October 1, 2015. On...
-
What is Boolean algebra? What was its original purpose?
-
Explain in what ways employers are required by at least three other countries other than the United States to provide better parental leave benefits.
-
One can follow the developments in the chemical industry in trade magazines such as the Chemical \& Engineering News. Answer the following questions after reading the article, "Global Top 50 " for...
-
On July 1, 2011, Flashlight Corporation sold equipment it had recently purchased to an unaffiliated company for $480,000. The equipment had a book value on Flashlights books of $390,000 and a...
-
Modern gas turbine engines operate at fuel-to-air ratios of about 0.02, pressure ratios (ratio of compressor exit pressure to inlet pressure) of nearly 40, and with a turbine inlet temperature...
-
J. D. Williams, Inc., is an investment advisory firm that manages more than $120 million in funds for its numerous clients. The company uses an asset allocation model that recommends the portion of...
-
ABC Company has Accounts Payable of $35,000. They borrowed $120,000 at 8% interest to purchase land to serve as the location for their storefront. They must make monthly payments according to the...
-
Consider the seventh excited level of the hydrogen atom. A)What is the energy of this level? B)What is the largest magnitude of the orbital angular momentum? C)What is the largest angle between the...
-
1. What is the significance of FC 290?Links to an external site. 2. What are the four elements that must be plead to establish a prima facie case of Contempt? 3. A citee in a contempt action is...
-
Question 3 Comprehensive Manufacturing Budget (20 marks) On your return from China you will undertake a 3 month secondment to wholly-owned subsidiary DairyCo based at their Australian Head Office in...
-
we looked at the Quicksort algorithm. Consider the worst-case scenario for quick- sort in which the worst possible pivot is chosen (the smallest or largest value in the array). Answer the following...
-
Find five self-empowerment tips on Google and cite the source in the response and at the end on Reference. Then, add your own self-empowerment tip. How can these tips help you with your personal and...
-
An initial deposit of $ 1 0 0 , 0 0 0 is made in year 1 . The deposits increase at a rate of 8 % per year for 1 0 years. Determine the amounts if the interest rate is 9 % compounded annually.
-
r = 0.18 Find the coefficients of determination and non-determination and explain the meaning of each.
-
The following quotation is taken from Rockford Consulting's website (rockfordconsulting.com/wcm.htm): "World Class Manufacturing is a process-driven approach to improving manufacturing operations. It...
-
Benson ProSystems needs a new signal conditioner module for a large process control system it is designing. Current market conditions will support annual sales of 1,000 systems. Engineers estimate...
-
Mama Fran's Bakery makes a variety of home-style cookies for upscale restaurants in the Atlanta metropolitan area. The company's best-selling cookie is the double chocolate almond supreme. Mama...
-
Are there actually situations in which the use of one or more of the older sales technologies might be superior to something new? When and why would older approaches perhaps be a better choice in...
-
Consider any three of the newer types of sales technology presented in the chapter. For each, provide as many specific applications as you can think of that could enhance the buyerseller relationship...
-
Why would a salesperson be reluctant to adopt CRM? What can management do to help gain salesperson adoption and usage?
Study smarter with the SolutionInn App