Accounts receivable turnover is the number of times that a company collects its average account receivable per year. The ratio evaluates the ability of a company to issue credit to its customers efficiently and collect funds from them in a timely manner. A high turnover ratio indicates a number of high-quality customers. A low turnover ratio represents a large proportion of clients having financial difficulties. It also indicates an excessive amount of bad debt.
To answer the question -- what is the accounts receivable turnover for the imagine company, use this computation:
Given:
Net Sales - $1,000,000
Beginning Account Receivable =$700,000
Ending Accounts Receivable = $300,000
Let X = Accounts Receivable Turnover
X = Net Sales ÷ ((Beginning Accounts Receivable + Ending Accounts Receivable) / 2)
X= 1,000,000/ (700,000+300,000)/2
X = 1,000,000/ (1,000,000/2)
X = 1,000,000/500,000
X = 2
<span> </span>
Answer:
Ending Inventory = $55,000
Explanation:
<u>Particular Cost price Retail price
</u>
Opening Inventory $30,000 $42,000
<u>Add: Additional Purchases $196,000 $368,000
</u>
<u>Cost of Goods Available for Sale $226,000 $410,000
</u>
Cost to Retail Ratio: 55 %
Less: Net Sales $310,000
Ending Inventory $55,000 $100,000
Note:
Cost to Retail Ratio = $226,000 / $410,000
Cost to Retail Ratio = 55% (Approx)
Answer:
the amount that should be paid is $11,292
Explanation:
The computation of the amount that should be paid is shown below:
Present worth is
= $10,000 + $75(P/A, 6%, 10) + $25(P/G, 6%, 10)
= $10,000 + $75 × 7.3601 + $25 × 29.6023
= $11,292
Hence, the amount that should be paid is $11,292
We simply applied the above calculation
Answer:
it means consisting of different items/member that are of different kinds
Explanation:
