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Gnoma [55]
3 years ago
12

Xenox Company had net credit sales during the year of $1300000 and cost of goods sold of $800000. The balance in accounts receiv

able at the beginning of the year was $185000, and the end of the year it was $140000. What was the accounts receivable turnover?
Business
1 answer:
Lunna [17]3 years ago
4 0

Answer:

8 times

Explanation:

Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.

‘Ratio Analysis’ is used to analyze the performance of a company. It is used to analyze the liquidity, profitability, solvency and operational efficiency of the company.

Given:

Net credit sales = $1,300,000

Beginning accounts receivable = $185,000

Ending accounts receivable = $140,000

Accounts receivable turnover is the ratio of net credit sales to average accounts receivable.

It can be calculated as:

Average accounts receivable = \frac{Beginning accounts receivable + Ending accounts receivable}{2}

Average accounts receivable = \frac{185,000 + 140,000}{2}

Average accounts receivable = \frac{325,000}{2}

Average accounts receivable = $162,500

Accounts turnover ratio = \frac{Net credit sales}{Average accounts receivable}

Accounts turnover ratio = \frac{1,300,000}{162,500}

Accounts turnover ratio = 8 times

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2 years ago
Orion Flour Mills purchased a new machine and made the following expenditures:
GrogVix [38]

Answer:

Dr Equipment 62400

Dr Prepaid Insurance 500

Cr Cash 2900

Cr Accounts Payable 60,000

Explanation:

Preparation of the journal entry to Record the above expenditures for the new machine.

Dr Equipment 62400

Dr Prepaid Insurance 500

Cr Cash 2900

Cr Accounts Payable 60,000

(62,400+500-2900)

Equipment:

Purchase price ($55,000) + Sales tax (5,000) + Shipping (800) + Installation (1,600) =

Total cost 62400

Cash:

Shipment of machine (800) + Insurance on the machine ((500)) +Installation of the machine (1,600) = 2900

8 0
2 years ago
Which of the following is correct regarding a petty cash fund? A petty cash fund is used for minor purposes. A petty cash fund r
Harlamova29_29 [7]

Answer:

The correct answer is letter "D": All of the answers are correct regarding a petty cash fund.

Explanation:

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For accounting purposes, transactions involving petty cash are documented only when the petty cash was totally spent and a new fund is to be created and recorded with a voucher.

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3 years ago
How do organizations calculate various costs, and what do these calculations mean to business?
QveST [7]

Answer:

See the explanation section

Explanation:

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2 years ago
Which best describes what injector factors bring to an economic system?
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Answer: Money

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Money is one of the injector factor that is necessary for bringing the economic system. The injection of money helps in boosting economy of any country or region. This also helps in investment, strengthening the government to take necessary measures for development, and export.  Money can be used to purchase raw materials to produce more number of goods and it enables the customers to purchase those goods and services. This exerts a positive impact on the circulation of economy.

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