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Anni [7]
2 years ago
7

wist Corp. has a current accounts receivable balance of $330,800. Credit sales for the year just ended were $3,804,200. a. What

is the company's receivables turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) b. What is the company's days' sales in receivables? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) c. How long did it take on average for credit customers to pay off their accounts during the past year? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Alex17521 [72]2 years ago
6 0

Answer:

Receivables turnover = 11.50 times

Days' sales in receivables = 31.74 days

Average collection period = 31.74 days

Explanation:

<u>Receivables Turnover Ratio</u>

Receivables turnover = Credit Sales / Receivables

                                    = $3,804,200 / $330,800

                                     = 11.50 times

Receivables turnover ratio measures how many times a company's receivables are converted to cash in a period. A high receivables turnover ratio can indicate that a company’s collection of accounts receivable is efficient and that the company has a high proportion of quality customers that pay their debts quickly.

<u>Days' sales in Receivables/ Average Collection Period</u>

Days' sales in receivables = 365 days / Receivables turnover

                                            = 365 / 11.50

                                            = 31.74 days

On average, credit customers took 31.74 days to pay off their accounts.

The days' sales in receivable ratio which is also known as the average collection period tells you the number of days it took on average to collect the company's accounts receivable during the past year.

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Dr. Evil presents the sound of a buzzer to his pet rabbit, and he follows it with the delivery of a small electric shock. After
alexdok [17]

Answer:

Reconditioning

Explanation:

Reconditioning means to "condition again" so the rabbit will demonstrate and condition the fear of the buzzer again.

5 0
3 years ago
You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is t
Blababa [14]

Answer:

the opportunity cost of going to work on saturday is $32

Explanation:

The opportunity cost of going to work on saturday is as follows:

= Income earned on saturday - psychic cost

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= $44 - $8

= $32

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8 0
2 years ago
The twist trust has generated $60,000 in depreciation deductions for the year. its accounting income is $75,000. in computing th
cupoosta [38]

Answer:

the file attached shows the whole explanation. I hope it helps.

Explanation:

Complete question

Compute the depreciation deductions that Hernandez, Jackson, and Twist may claim under the following assumptions. If an amount is zero, enter "0". Do not round any division. Depreciation Deductions Hernandez Jackson Twist Trust

a. Depreciation deduction allocated to corpus. Hernandez$_____ Jackson$_____ Twist Trust$_____

b. If depreciation was allocated to income. Hernandez$_____ Jackson$_____ Twist Trust$_____

c. If the trustee distributed $15,000 each to Hernandez and to Jackson and retained the remaining accounting income. Hernandez$_____ Jackson$_____ Twist Trust$_____

d. If Twist is an estate (not a trust) and depreciation deduction allocated to corpus.

Download docx
5 0
3 years ago
Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $80,000 of services on
Stels [109]

Answer and Explanation:

a. The preparation of income statement is shown below:-

                               Income Statement

Service revenue                               $80,000

operating expenses  

Salary expenses           $28,000

Uncollectible accounts

expense                        $3,273

Total operating expense                   $31,273

Net income                                         $48,727

Working Note :-

Days       Amount     Percentage     Allowance balance

Current   $16,800       0.01                  $168

0-30         $5,100        0.05                 $255

31-60       $4,000        0.10                  $400

61-90       $2,000        0.30                 $600

Over 90

days         $3,700       0.50                  $1,850

Total        $31,600                                $3,273

b. The computation of net realizable value of the accounts receivable is shown below:-

Net realizable value = Accounts receivable - Allowance for doubtful accounts

= ($80,000 - $48,400) - $3,273

= $31,600 - $3,273

= $28,327

4 0
3 years ago
Breakin Away Company has three employees—a consultant, a computer programmer, and an administrator. The following payroll inform
alekssr [168]

Answer:

Gross pay:

  • consultant $4,000
  • computer programmer $3,300
  • administrator $2,800

Net pay:

  • consultant $2,767.98
  • computer programmer $2,295.48
  • administrator $1,993.98

Explanation:

                                           regular earnings     overtime    withholding  

                                                                                              allowances

Consultant                        $4,000 per week       N/A                2

Computer programmer          $60 per hour        1.5                  1

Administrator                          $50 per hour          2                  2

computer programmer worked 50 hours = ($60 x 40) + ($60 x 10 x 1.5) = $3,300

administrator worked 48 hours = ($50 x 40) + ($50 x 8 x 2) = $2,800

Social security taxes:

  • Consultant = 6% x $4,000 = $240                        
  • Computer programmer = 6% x $3,300 = $198        
  • Administrator = 6% x $2,800 = $168

Medicare taxes:

  • Consultant = 1.5% x $4,000 = $60                        
  • Computer programmer = 1.5% x $3,300 = $49.50        
  • Administrator = 1.5% x $2,800 = $42

Federal income taxes:

  • Consultant: amount subject to withholding = $4,000 - (2 x $75) = $3,850. Federal income taxes = $356.90 + [28% x ($3,850 - $1,796) = $932.02                        
  • Computer programmer = amount subject to withholding = $3,300 - (1 x $75) = $3,225. Federal income taxes = $356.90 + [28% x ($3,225 - $1,796) = $757.02            
  • Administrator = amount subject to withholding = $2,800 - (2 x $75) = $2,650. Federal income taxes = $356.90 + [28% x ($2,650 - $1,796) = $596.02  

Gross pay:

  • consultant $4,000
  • computer programmer $3,300
  • administrator $2,800

Net pay:

  • consultant $4,000 - ($240 + $60 + $932.02) = $2,767.98
  • computer programmer $3,300 - ($198 + $49.50 + $757.02) = $2,295.48
  • administrator $2,800 - ($168 + $42 + $596.02) = $1,993.98
6 0
3 years ago
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