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
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<u>Answer:</u> Option 1
<u>Explanation:</u>
If the convertible bonds are issued at discount then it will increase the numerator. Convertible bonds yields a fixed interest income. When the convertible bonds are issued at a discount then they can be converted into shares and discount is considered in the purchasing price of the stock.
In amortized bond the each payment goes towards the interest as well as the principle amount. Amortization reduces the credit risk as the principle is repaid on maturity or on default of the firm.
Answer:
Sep 11
Dr Cash 590.00
Cr Sales 590.00
Dec 31
Dr Warranty expense 59.00
Cr Estimated warranty liability 59.00
July 24
Dr Estimated warranty liability 41.00
Cr Repair parts inventory 41.00
Explanation:
Home Store Journal entry
Sep 11
Dr Cash 590.00
Cr Sales 590.00
Dec 31
Dr Warranty expense (590*10%) 59.00
Cr Estimated warranty liability 59.00
July 24
Dr Estimated warranty liability 41.00
Cr Repair parts inventory 41.00
Answer:
Total direct labor hours= 77,250
Direct labor cost= $911,550
Explanation:
Giving the following information:
Production= 51,500 units
Standard hours= 1.5 per unit
Standard rate= $11.8 per hour
<u>First, we need to calculate the direct labor hours required:</u>
Total direct labor hours= 1.5*51,500= 77,250
<u>Now, the direct labor cost:</u>
Direct labor cost= 77,250*11.8
Direct labor cost= $911,550
