Consider the followingfinancial data for Marys Computer Stores: Statement of Financial Position as of December 31,2012...
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Consider the followingfinancial data for Marys Computer Stores: Statement of Financial Position as of December 31,2012 Cash & equivalents $ 104,500 Accounts receivable 105,500 Inventories 356,500 Total current assets $ 566,500 Accounts payable Short-term bank note Accruals Total short-term liab. Long-term debt Common equity $ 86,500 Operating expenses Earnings before interest and taxes (EBIT) Interest expense 191,000 97,500 $ 375,000 258,000 Net fixed assets 605,500 539,000 Total assets $ 1,172,000 Total liabilities & equity $ 1,172,000 Profit & Loss Statement for the Year Ended December31, 2012 Net sales $ 707,500 Cost of sales 444,500 Gross profit $ 263,000 153,000 $ 110,000 54,000 Earnings before taxes (EBT) $ 56,000 Federal and state income taxes (45 percent) 25,200 Net income $ 30,800 Calculate Marys average collection period for accounts receivable. Consider the followingfinancial data for Marys Computer Stores: Statement of Financial Position as of December 31,2012 Cash & equivalents $ 104,500 Accounts receivable 105,500 Inventories 356,500 Total current assets $ 566,500 Accounts payable Short-term bank note Accruals Total short-term liab. Long-term debt Common equity $ 86,500 Operating expenses Earnings before interest and taxes (EBIT) Interest expense 191,000 97,500 $ 375,000 258,000 Net fixed assets 605,500 539,000 Total assets $ 1,172,000 Total liabilities & equity $ 1,172,000 Profit & Loss Statement for the Year Ended December31, 2012 Net sales $ 707,500 Cost of sales 444,500 Gross profit $ 263,000 153,000 $ 110,000 54,000 Earnings before taxes (EBT) $ 56,000 Federal and state income taxes (45 percent) 25,200 Net income $ 30,800 Calculate Marys average collection period for accounts receivable.
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Related Book For
Intermediate Accounting
ISBN: 978-1119048534
11th Canadian edition Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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