All categories

1 year ago

Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet

Business

1 answer:

Aleksandr-060686 [28]1 year ago

7 0

The receivables turnover ratio and the average collection period for Walco: 141.43 times; 2.58 days.

Receivable turnover ratio:

WALCO

Average receivable=1785+2732/2

Average account receivable=4517/2

Average account receivable=$2258.5

Receivable turnover ratio=319427/2258.5

Receivable turnover ratio=141.43 times

Average collection period =365/141.43

Average collection period=2.58 days

TARMART

Average receivable=6016+6544/2

Average receivable=12560/2

Average receivable=$6280

Receivable turnover ratio=64878/6280

Receivable turnover ratio=10.33 times

Average collection period=365/10.33

Average collection period=35.34 days

COSTGET

Average receivable=599+635/2

Average receivable=1234/2

Average receivable= $617

Receivable turnover ratio=65963/617

Receivable turnover ratio=106.87 times

Average collection period=365/106.87

Average collection period=3.42 days

Inconclusion the receivables turnover ratio and the average collection period for Walco: 141.43 times;2.58 days

Your question is incomplete, but most probably your full question was:

Below are amounts (in millions) from three companies' annual reports. beginning accounts receivable ending accounts receivable net sales Walco $1,785 $2,732 $319,427 Tarmart 6,016 6,544 64,878 CostGet 599 635 65,963 required: 1. calculate the receivables turnover ratio and the average collection period for Walco, Tarmart and CostGet.

Learn more about Receivable Turnover Ratio on: brainly.com/question/24849094

#SPJ4

You might be interested in

The analysis phase of decision making includes___________. Qualitative analysis is based primarily on__________ and decision-mak

posledela

Answer: Please refer to Explanation

Explanation:

The attached photo contains the complete question as well as some options.

1. Both qualitative and quantitative analysis.

The analysis phase includes both of these types of analysis to provide a complete view of a variable from both a numbers and an experience perspective.

2. Judgement, experience, and intuition.

Qualitative Analysis is usually based on these 3 as numbers are not necessarily used.

3. Experience.

The more you are faced with analysing Qualitative data, the more the get used to it and better at it.

4. quantitative facts, data, and mathematical expressions.

Quantitative Analysis is done on mathematical instruments such as facts,data and expressions to provide a more mathematical driven approach to analysis.

5. Studying.

The more you study Quantitative Data and it's methods of analysis, the better you get at it because you begin to see patterns as well as use better analytic tools.

6 0

3 years ago

Read 2 more answers

Different investments have different levels of ___________ (savings, risk, or interest) and offer different rates of return. For

fiasKO [112]

I the second one is more risky I'm not really that good at business

5 0

3 years ago

Read 2 more answers

You anticipate your firm will need 20,000 bushels of oats in December so you hedged your position today at the closing price whe

guapka [62]

Answer:

The answer is "2,040".

Explanation:

Since in the event the company needs the oats, it should take a long position today to hedge them. As indicated throughout the question, the price of the halftime show was set, and the present settling price of 218.50 cents was $2,1850. Moreover, the industry wants 20,000 boxes with oats and the next claim is 5,000, and that is why 4 agreements (20000/5 000) occupy a longer time. So the actual market price of $228.70, i.e. $22870, is 228.70 so hedging would have the corresponding profit/loss:

$Gain/Loss = \text{(Market price on the date of settlement - Futures price at the date of booking)} \times Quantity\ hedged$

$= (2.2870- 2.1850)\times 20000 \\\\ = 0.102 \times 20000 \\\\ = 2040$

8 0

3 years ago

On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of produci

Korvikt [17]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

3 0

4 years ago

Producer surplus: A. is the difference between the true value of a good and the amount the firm wants to receive. B. is the dif

Alex Ar [27]

Answer:

Option (B) is correct.

Explanation:

Producer surplus is defined as the difference between the current market price of a good and the amount or cost incurred by the firm to produced the good. If the producer will be able to get the higher price for a good than the full cost of production of that good then he will earn the producer surplus.

Graphically, the producer surplus is represented by the flat top.

6 0

3 years ago