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
iren2701 [21]
1 year ago
5

Procter & Gamble is a multinational corporation that manufactures and markets many household products. Last year, sales for

the company were $ 83,062 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will assume that 90 percent of sales were on credit. The average gross profit on sales was 49 percent. Additional account balances were:
Required:
Compute Procter & Gamble's receivable turnover ratio and its inventory turnover ratio. On average, how many days does it take for the company to collect its accounts receivable and sell its inventory?
Business
1 answer:
Stolb23 [73]1 year ago
3 0

Procter & Gamble is a multinational corporation that manufactures and markets many household products  is our goal is to use every opportunity we have no matter how small to set change in motion. To be a force for good and a force for growth. Compute Procter & Gamble's receivable turnover ratio and its inventory turnover ratio.

         

Ans.1a Account receivables turnover ratio  =  Net credit sales / Average trade receivables  

   74756 / 6447      

   11.60 times      

         

 *Net credit sales  =  Total sales * 90%      

 83062 * 90%        

 74756        

         

 *Average receivables  =  (Beginning receivables + Ending receivables / 2    

   (6508 + 6386) / 2      

   6447      

         

Ans.1b Inventory turnover ratio   =    Cost of goods sold / Average inventory    

   42362 / 6834      

   6.20 times      

         

 Cost of goods sold  =  Total sales - Gross profit      

   83062 - (83062 * 49%)    

   42362      

         

 *Average inventory  =  (Beginning inventory + Ending inventory) / 2    

   (6909 + 6759) / 2      

   6834      

         

Ans.2a Days' sales in accounts receivables  =  No. of days in year / Receivables turnover ratio  

     365 / 11.60    

     31.47 days    

         

Ans.2b Days' sales in inventory  =  No. of days in year / Inventory turnover ratio    

   365 / 6.20      

   58.87 days

Learn more about  turnover ratio here

brainly.com/question/27523896

#SPJ4

You might be interested in
Which of the following is most necessary for specialization among producers to take place? A. Free trade B. Competition C. Scarc
Lelu [443]
I think the answer is C, Scarcity.

But it depends, are you talking about plants or the consumer market? Because there also is specialization that occurs in flora species as well.

But I hope this helps!
6 0
3 years ago
Read 2 more answers
Rocky industries received its telephone bill in the amount of $300 and immediately paid it. rocky's journal entry to record this
loris [4]
Hi there

The journal entry would be

debit to telephone expense for $300
Credit to cash for $300

Good luck!
8 0
3 years ago
A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year: (3 points)
Lostsunrise [7]

Answer:

Particulars                                   Amount

Provision for uncollectible         $6,080 ($76000*8%)

Less: Provision already made   <u>$1,000</u>

Provision to be made                <u>$5,080</u>

Date       Particulars                                                      Debit     Credit

31-Dec    Bad Debts                                                    $5,080

                    To Allowance for Doubtful Accounts                    $5,080

               (Being the adjusting entry to estimate bad debts)

4 0
3 years ago
What is the best Honda dirt bike?
Illusion [34]

Answer:

KTM 350 full-size 450s, the 350 remains the bike for the common man. The KTM 350, along with its blood brother the Husqvarna FC350, appeals to the rank-and-file rider who doesn’t want to deal with 60 horsepower. The 350s have steadily improved over their lifespan and are currently better than ever.

Explanation:

7 0
3 years ago
All the occupation are equally important how and why .<br><br><br><br><br> ​
sveticcg [70]

It is true that some jobs require more training and experience than others. Also, that some jobs carry more responsibility, pay more, and have greater status.

But that doesn’t mean one job is more important than another.

In an organization, everyone matters and no one should look down upon someone for the work they are doing.

Remember, every job should be valued. And, every person should be treated with dignity and respect.

6 0
2 years ago
Other questions:
  • For analysis purposes Jay considers his restaurant to have three revenue centers. These are the dining room, the bar and off-sit
    10·1 answer
  • In a swot analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars.
    11·1 answer
  • If $1,500 is invested at 3% interest, how much money must be invested at 6% so that the total return for both investments is $19
    13·1 answer
  • Gavin is creating a Google Display Ads campaign designed to drive sales on his website. He wants to reach potential customers wh
    5·1 answer
  • Consider the following production​ function: q equals 9 LK plus 4 Upper L squared minus (one third )Upper L cubed . Given the fo
    13·1 answer
  • __________ is a cornerstone in the protection of information assets and in the prevention of financial loss.
    14·2 answers
  • A student has inherited $50,000. If it is placed in asavings account that earns 3% interest, how much isin the account in 30 yea
    14·1 answer
  • 15. Snowland and Pledza are neighboring countries. Pledza imports more products than it exports. Over the last decade, Pledza im
    10·1 answer
  • The adjusting entry to record revenue for services the seller has performed but not yet collected requires ______.
    8·2 answers
  • Palm Imagination makes and sells silk palm trees. Each tree uses 0.80 yards of silk fabric. Budgeted production of trees in unit
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!