The following information for Great Oaks Furniture, a retail furniture and design firm, relates. Calculate asset turnover,
Question:
The following information for Great Oaks Furniture, a retail furniture and design firm, relates.
Calculate asset turnover, accounts receivable turnover, days’ sales in receivables, inventory turnover, and days’ sales in inventory for 2011 and 2012. How well does Great Oaks Furniture appear to manage its accounts receivable and inventory? What suggestions do you have for thecompany?
Transcribed Image Text:
Great Oaks Furniture Balance Sheets December 31, 2012 December 31 2011 Assets Current assets: 41,200 570,000 5,070,000 83,800 5,765,000 1,097,000 6,862,000 Cash 53,000 443,000 4,841,000 78,000 5,415,000 1,095,000 6,510,000 Accounts receivable Inventory Prepaid expenses Total current assets Building and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities 604,000 679,000 Accounts payable 624,000 Bank loan payable Other accrued payables Total current liabilities Long-term debt Total liabilities Stockholders'equity: 625,000 1,562,000 3,359,000 1,359,000 1,496,000 3,225,000 Common stock Retained earnings 1,359,000 2.278,000 3,637,000 6,862,000 Total stockholders'equity Total liabilities and stockholders' equity 6,510,000 Year Ended December 31, 2011 $5,253,000 2,627,000 2,626,000 Year Ended December 31 Great Oaks Furniture Statement of Earnings 2012 Net sales Cost of goods sold Gross margin Operating expenses $5,568,000 2,840,000 2,728,000 501,000 835,000 1,336,000 1,392,000 139,000 1,253,000 439,000 814,000 Selling expenses 630,000 788,000 1,418,000 1,208,000 158,000 1,050,000 368,000 682,000 General and administrative expenses Total operating expenses Operating income Interest expense Income before taxes Income taxes Net income
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
2012 2011 Asset turnover 5568000 6862000 811 5253000 6510000 807 Accounts receivable turnover 556800...View the full answer
Answered By
Ajay Negi
Hi, I've completed my degree in engineering (Information Technology) from an NIT. Currently working as a software engineer. Wish to impart quality education to the future generation.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
You have access to the following information for Featherbed: Prior period financial statements Anticipated results for the current year Industry comparisons. Featherbed Surf & Leisure Holidays...
-
You are provided with the following information for Mondello Inc. Mondello Inc. uses the periodic method of accounting for its inventory transactions. March 1 Beginning inventory 2,000 liters at a...
-
You are provided with the following information for Gas Guzzlers. Gas Guzzlers uses the periodic method of accounting for its inventory transactions. March 1 ....Beginning inventory 2,200 liters at a...
-
Sonal Singh is a lawyer employed by Just and Fare Solicitors who act for Alice Tay, the applicant in a de facto relationships property dispute in the Federal Circuit Court. Taylor Merdec is a lawyer...
-
a) The court seems to regard Jones's allegations as trivial. In fact, hasn't she alleged disgusting behavior by her employer? How can the court regard her claims so lightly? b) What is the judge...
-
Theme and event years have been used by several countries as a tourism marketing strategy. Why are these theme/event years a good platform for IMC?
-
Relating purchases, cash payments and the general journal to the subsidiary ledger and control account At 1 February, the following information was extracted from the records of Sonia Toombs (assume...
-
Houghton Limited is trying to determine the value of its ending inventory as of February 28, 2017, the companys year-end. The following transactions occurred, and the accountant asked your help in...
-
16. The area (in sq. units) of the part of the circle x + y=36, which is outside the parabola y = 9x is: (a) 24+33 (b) 24-33 (c) 12+33 (d) 12-33
-
Who are the stakeholders in this case and what are their interests?
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates. Calculate earnings per share, the priceearnings ratio, the gross margin percentage, return on total...
-
Calculate the current ratio, the acid-test ratio, the debt-to-equity ratio, and times interest earned for 2011 and 2012. Assume that Great Oaks Furniture was applying for a business loan and you are...
-
Bond interest expense for the issuing company is calculated using which of the following approaches: a. Multiply the stated value of the bond by the contract rate. b. Multiply the balance of the...
-
A student drove to the university from her home and noted that the odometer reading of her car increased by 15.0 km. The trip took 17.0 min. (For each answer, enter a number.) (a) What was her...
-
Kirkwood Company acquired and placed in service in 2018 $400,000 of 5-year assets, $400,000 of 7-year assets, and $400,000 of 15-year assets. The company's taxable income for 2018 before any Section...
-
in sales transaction subject to the residential property disclosure act, the act requires the appropriate disclosure statement to be provided to prospective purchasers by the? A ) broker prior to the...
-
What is the "P(kg)" force required to cut a piece of "a(mm)" thickness and "b(mm)" width from a material with a breaking stress of Tmax (kg/cm2) of the sheet metal plate to be used on a ship?...
-
Among the individuals that make up a buying center, there are people who wield influence on any purchase decision, especially if it is a large purchase. Which of these is MOST likely to be an...
-
What is the kinetic energy in MeV of a -meson that lives 1.40 10 -16 s as measured in the laboratory, and 0.840 x 10 -16 s when at rest relative to an observer, given that its rest energy is 135 MeV?
-
Q:1 Take any product or service offered in Pakistan and apply all determinents of customer Perceived value ?
-
What are five things the auditor should document when performing an ADA?
-
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the companys operations: (a) The cash...
-
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: In addition, the beginning raw materials inventory...
-
Minden Company is a wholesale distributor of premium European chocolates. The companys balance sheet as of April 30 is given below: The company is in the process of preparing budget data for May. A...
-
The art of negotiation is especially important when working in an international business setting. Negotiating a successful contract is a highly valuable skill that is to be attained by working on...
-
1. At the break-even point, Jefferson Company sells 95,000 units and has fixed cost of $351,500. The variable cost per unit is $0.30. What price does Jefferson charge per unit? Note: Round to the...
-
Your company wants you to research the potential for implementing a relational database. How would you explain a relational database to them? What are the pros and cons of relational databases? What...
Study smarter with the SolutionInn App