1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nadya68 [22]
4 years ago
11

Double West Suppliers (DWS) reported sales for the year of $400,000, all on credit. The average gross profit percentage was 35 p

ercent on sales. Account balances follow:
Beginning Ending
Accounts receivable (net) $ 51,000 $ 61,000
Inventory 67,000 46,000
Required:
1. Compute the following turnover ratios. (Round your answers to 1 decimal place.)
2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. (Use 365 days in a year. Do not round intermediate calculations. Round turnover ratio calculation and final answers to 1 decimal place.)
Business
1 answer:
erastovalidia [21]4 years ago
6 0

Answer:

1. Accounts Receivables Turnover Ratio = Net Credit Sales/Average Accounts Receivables = 400,000 / (51000 + 61000)/2

= 400,000/56,000

= 7.1 times

Inventory Turnover Ratio = Cost of Goods Sold/Average Inventory = (Sales-Gross Profit)/Average Inventory = (400,000 - 35% * 400,000) / (67000 + 46000)/2

=400,000 - 140,000 / 56,500

= 260,000 / 56,500

= 4.6 times

2. Average Days to Collect Receivables = 365/7.1 = 51.40 or 52 days

Average Days to Collect Inventory = 365/4.6 = 79.34 days

You might be interested in
A company purchases merchandise with a catalog price of $24,500. The company receives a 35% trade discount from the seller. The
s344n2d4d5 [400]

Answer:

$ 15606.5

Explanation:

Catalog Price = $ 24500

Trade Discount = 35 %

Credit Term 2/10, n/30

Purchase Price = $ 24500- $ 24500 * 35 %=   $ 24500-8575= 15925

As Payment is made with in the discount period( 2/10 n/30  meaning 2 % of discount will be given in the first ten days) an additional discount of

15925 * 2 % = 318.5 will be given

Net Cost would be $ 15925- $ 318.5= $ 15606.5

If the payment had been made after the first ten days the 2% discount would have not been allowed

4 0
3 years ago
Read 2 more answers
Ruby is 25 and has a good job at a biotechnology company. She currently has $9,200 in an IRA. She believes her IRA will grow at
Stolb23 [73]

Answer:

almost 35k $.........

4 0
3 years ago
A large assortment of each item within a product line in a store is referred to as?
Marianna [84]

A large assortment of each item within a product line in a store is referred to as breadth of the product line.

Product width, also called width, is the number of product lines offered by a company. For example, a shoe store's width would be 6 if it had Nike in stock. Asics.

Product Width indicates the number of different products the store sells. The more products offered, the wider the product range of this company. Product depth indicates how many variations of each product a store carries.

The number of products in a product line is related to the depth of the product line, and the number of individual product lines within the enterprise is the width (or breadth) of the product line.

Learn more about product line here: brainly.com/question/15187131

#SPJ4

7 0
2 years ago
I WANNA PLAY VIDEO GAMES RN. DO YOU WANNA VIDEO GAMES OR MOBLIE GAMES RN?
Julli [10]

no thanks but if you have questions regarding school topics ill try to be helpful!! lol

Explanation:

4 0
3 years ago
Suppose that the manager of a company has estimated the probability of a super-event sometime during the next five years that wi
Inessa [10]

Based on the financial cost incurred if supply is disrupted and the probability that this happens, the number of suppliers the manager should use is Two (2) suppliers.

<h3>How many suppliers should be used?</h3>

If 3 suppliers are used, the probability of disruption would be:

= Probability of super event + (1 - Probability of super event) x Probability of unique event^ number of suppliers

= 5% + (1 - 5%) x 10%³

= 0.145

The payoff would be:

= 2 million x 0.145 + 30,000

= $191,900

With two suppliers:
= 2 million x (5% + (1 - 5%) x 10%²) + 30,000

= $169,000

With one supplier :

= 2 million x (5% + (1 - 5%) x 10%) + 30,000

= $320,000

The lowest cost is with 2 suppliers so this should be chosen.

Find out more on probability of disruption at brainly.com/question/16625463.

#SPJ1

5 0
2 years ago
Other questions:
  • It is safe to use your bright headlights if there is a car ahead of you within 300 feet. True or False?
    8·2 answers
  • If consumers start to believe they need a product, what is likely to happen?
    12·2 answers
  • if the cross price elasticity between goods b and a is -2 and the price of good b increases by 5 percent the quantity demanded o
    12·1 answer
  • What is trend analysis
    8·2 answers
  • Ryan estimates that he drove approximately 1,300 miles on business trips, but he can only provide written documentation of the b
    5·1 answer
  • Peter wants to buy office space for his new business however he is not sure if the current market is suitable for buying propert
    5·2 answers
  • ou are considering a stock investment in one of two firms (NoEquity, Inc. and NoDebt, Inc.), both of which operate in the same i
    5·1 answer
  • An organization that has a strong ethical environment usually has a core value of placing _______ interests first. a. stockholde
    15·1 answer
  • Why does enterprise resource planning (ERP) systems software include all of the software used to manage different departments wi
    5·1 answer
  • The Equal Employment Opportunity Act of 1972 strengthened the Equal Employment Opportunity Commission, an agency created by the
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!