You've collected the following information for the most recent financial year of Ontario Iron: . Cash:...
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You've collected the following information for the most recent financial year of Ontario Iron: . Cash: $25 million Inventory: $42 million • Total assets: $280 million Fraction of sales on credit: 100% • Average collection period: 50 days • Payables period: 43 days . Current ratio: 1.2 . (Total) asset turnover: 4 Inventory turnover: 9 • Total debt ratio (total liabilities/assets): 0.7 . . Attempt 1/10 for 10 pts. Part 1 What was the accounts receivable balance at the end of the year (in $ million)? 276.16 Sales: Correct ✓ Sales Asset turnover = Assets + Sales Asset turnover Assets=4-280 = 1,120 Credit sales: Credit sales Sales Fraction of sales on credit = 1,120*1 = 1,120 Accounts receivable: ACP= Accounts receivable Credit sales per day Sales Asset turnover Assets = 4.280= 1,120 = Credit sales: Credit sales Sales Fraction of sales on credit = 1,120 1=1,120 Accounts receivable: ACP = F Accounts receivable Credit sales per day Accounts receivable ACP Credit sales per day = 50- 1,120 365 = 153.42 (million) 0+ decimals Submit Part 2 What was net fixed assets at the end of the year (in $ million)? . = 1+ decimals Submit Part 3 Attempt 2/10 for 8 pts. What was the accounts payable balance at the end of the year (in $ million)? Attempt 2/10 for 10 pts. Part 3 Attempt 2/10 for 8 pts. What was the accounts payable balance at the end of the year (in $ million)? 1+ decimals Submit Part 4 Attempt 1/10 for 10 pts. What was the amount of short-term debt at the end of the year (in $ million)? 0+ decimals Submit Part 5 What was the amount of equity at the end of the year? 0+ decimals Submit Attempt 1/10 for 10 pts. You've collected the following information for the most recent financial year of Ontario Iron: . Cash: $25 million Inventory: $42 million • Total assets: $280 million Fraction of sales on credit: 100% • Average collection period: 50 days • Payables period: 43 days . Current ratio: 1.2 . (Total) asset turnover: 4 Inventory turnover: 9 • Total debt ratio (total liabilities/assets): 0.7 . . Attempt 1/10 for 10 pts. Part 1 What was the accounts receivable balance at the end of the year (in $ million)? 276.16 Sales: Correct ✓ Sales Asset turnover = Assets + Sales Asset turnover Assets=4-280 = 1,120 Credit sales: Credit sales Sales Fraction of sales on credit = 1,120*1 = 1,120 Accounts receivable: ACP= Accounts receivable Credit sales per day Sales Asset turnover Assets = 4.280= 1,120 = Credit sales: Credit sales Sales Fraction of sales on credit = 1,120 1=1,120 Accounts receivable: ACP = F Accounts receivable Credit sales per day Accounts receivable ACP Credit sales per day = 50- 1,120 365 = 153.42 (million) 0+ decimals Submit Part 2 What was net fixed assets at the end of the year (in $ million)? . = 1+ decimals Submit Part 3 Attempt 2/10 for 8 pts. What was the accounts payable balance at the end of the year (in $ million)? Attempt 2/10 for 10 pts. Part 3 Attempt 2/10 for 8 pts. What was the accounts payable balance at the end of the year (in $ million)? 1+ decimals Submit Part 4 Attempt 1/10 for 10 pts. What was the amount of short-term debt at the end of the year (in $ million)? 0+ decimals Submit Part 5 What was the amount of equity at the end of the year? 0+ decimals Submit Attempt 1/10 for 10 pts.
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Answer rating: 100% (QA)
SOLUTION Part 1 To find the accounts receivable balance at the end of the year we can use the equation Accounts receivable Sales x Fraction of sales o... View the full answer
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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