The information that follows has been extracted from the year-end accounts of Jersey's SmallIsle restaurant. Year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The information that follows has been extracted from the year-end accounts of Jersey's SmallIsle restaurant. Year Accounts receivable Inventory Sales revenue (80% on account) Cost of sales Net profit 20X1 20X2 £15,000 £14,000 23,500 24,000 750,000 785,000 285,000 321,000 31,000 38,000 Required a For 20X1 and 20X2, calculate SmallIsle's: i Average collection period for accounts receivable. ii Inventory turnover b From your answers to part a, comment on SmallIsle's asset turnover trend. c For 20X1 and 20X2, calculate SmallIsle's: i Gross profit margin ii Net profit margin c From your answers to part c, comment on SmallIsle's profit trend. The information that follows has been extracted from the year-end accounts of Jersey's SmallIsle restaurant. Year Accounts receivable Inventory Sales revenue (80% on account) Cost of sales Net profit 20X1 20X2 £15,000 £14,000 23,500 24,000 750,000 785,000 285,000 321,000 31,000 38,000 Required a For 20X1 and 20X2, calculate SmallIsle's: i Average collection period for accounts receivable. ii Inventory turnover b From your answers to part a, comment on SmallIsle's asset turnover trend. c For 20X1 and 20X2, calculate SmallIsle's: i Gross profit margin ii Net profit margin c From your answers to part c, comment on SmallIsle's profit trend.
Expert Answer:
Answer rating: 100% (QA)
a i ANSWER To calculate the average collection period for accounts receivable we can use the following formula Average Collection Period Accounts Receivable Annual Credit Sales x Number of Days in Yea... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
Students also viewed these finance questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
The following trial balance has been extracted from the ledger of Andrea Howell, a sole trader, as at 31 May 20X3, the end of her most recent financial year. The following additional information as...
-
On April 12, 2011, BAM Technologies floated a $100 million bond issue. Each $1,000 bond entitled the bondholder to receive $50 every six months (October 12th and April 12th) until April 12, 2041, at...
-
Show the products of these reactions: CH;CH2 CH3 a) b) Pt . Cl2 . d) H,SO4 CCl . . e) CH,CH,CH,C=CH f) H,SO, HgSO, H,SO, CH3 Br2 g) , CH3 h) CH CH3 CI CH3 . 1) BH3, THF 2) H2O2, NAOH CH,CH3 ...
-
Angle of departure is required for a loci a) To begin the travel from a real pole b) To begin the travel from a complex pole c) To end the travel at complex pole d) To end the travel at real pole
-
Find a video on deposition preparation that is available online. As a paralegal, how can you assist in preparing a client for deposition?
-
Visit the AICPAs website (www.aicpa.org), under Research Standards. On the left side of the page click Code of Professional Conduct. Find Section 100 of the Code of Professional Conduct. Research the...
-
Richard and Monica asked if they could come in to discuss an issue. At that meeting, Monica seemed worried, and Richard sunk back in his chair. Monica said Richard was having second thoughts about...
-
Rianni Sonns recently died after a brief illness and is survived by her two children, Daysha and Dominic. Rianni was very close with her daughter, Daysha, but had not had a relationship with her son...
-
A wave travelling along a spring with a wavelength of 2 . 0 m enters a second spring where the wavelength becomes 3 . 0 m . If the speed in the first spring was 4 . 4 m / s . What is the speed of the...
-
Playten Ltd is a manufacturer of various pet accessories. They carry many lines of products that are produced in their main factory in Arthur. On October 5, 2021 the CFO, Cecily Jones called a...
-
Why is survey research so commonly used in health psychology? Find an example of a survey used in a health psychology program or research study and describe some of the questions that it includes?...
-
As manager of Community Outreach Services, you oversee the youth outreach program. CCHC has just received funding for a new Aboriginal Outreach Worker (Job Description is below). You need to fill...
-
The following accounts and their balances appear in the ledger of Young Properties Inc. on November 30 of the current year: Common Stock, $15 par Paid-In Capital in Excess of Par Paid-In Capital from...
-
Can you elaborate on the challenges ethical leaders face in globalized business settings, where cultural differences and divergent ethical norms require careful navigation and culturally sensitive...
-
Apply the fundamentals of tax law, including the concepts of source of income, assessable income, and deductions to determine taxable income. Your client Andrew Chang has attended your office to have...
-
1. As a general strategy, would you recommend that Carl take an aggressive approach to capacity expansion or more of a wait-and-see approach? 2. Should Carl go with the option for one facility that...
-
Pop Corporation owns 300,000 of 360,000 outstanding shares of Son Corporation, and its $8,700,000 Investment in Son account balance on December 31, 2016, is equal to the underlying equity interest in...
-
What disclosures are required for a variable interest entity? Are the disclosures only required for VIEs that will be consolidated?
-
Pam Corporation owns two-thirds (600,000 shares) of the outstanding $1 par common stock of Sat Company on January 1, 2011. In order to raise cash to finance an expansion program, Sat issues an...
-
A centrifugal pump impeller having dimensions and angles as shown rotates at \(500 \mathrm{rpm}\). Assuming a radial direction of velocity at the blade entrance, calculate the flow rate, the pressure...
-
Data measured during tests of a centrifugal pump driven at \(3000 \mathrm{rpm}\) are The flow rate is \(65 \mathrm{gpm}\) and the torque applied to the pump shaft is \(4.75 \mathrm{lbf} \cdot...
-
A centrifugal pump impeller having \(r_{1}=50 \mathrm{~mm}\), \(r_{2}=150 \mathrm{~mm}\), and width \(b=3.75 \mathrm{~mm}\) is to pump \(225 \mathrm{~L} / \mathrm{s}\) of water and supply \(12.2...
Study smarter with the SolutionInn App