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
igomit [66]
3 years ago
12

Compute the receivables turnover ratio using the following information:

Business
1 answer:
REY [17]3 years ago
8 0

Answer:

Receivables Turnover Ratio is 4

Explanation:

Computation of Average Receivables

Opening Receivables           $ 40,000

Ending receivables               <u>$ 60,000</u>

                                               $ 100,000

Average receivables            $   50,000

Net Credit Sales                    $ 200,000

The Receivables Turnover ratio is calculated by dividing the Net Credit Sales by the Average Receivables.

Receivables Turnover Ratio = Net Credit Sales / Average Receivables

$ 200,000/ $ 50,000   = 4

You might be interested in
Which of the following statements is true of absorption​ costing? A. It considers variable selling and administrative costs as p
Sonja [21]

Answer:

C. It considers fixed manufacturing overhead cost as product costs.

Explanation:

The statement that is true of absorption​ costing is that it considers fixed manufacturing overhead cost as product costs.

Absorption costing uses the concept of cost drivers to ascertain the quantum of fixed manufacturing overhead cost a product generates, and ties that fraction to the product as its own cost.

By so doing, what would ordinarily have been periodic costs that will be apportioned among products become fixed costs that are directly traceable to those products.

6 0
3 years ago
Cynthia Knott's oyster bar buys fresh Louisiana oysters for $5 per pound and sells them for $9 per pound. Any oysters not sold t
krek1111 [17]

Answer:

103

Explanation:

Please see attachment .

6 0
3 years ago
IMB Corporation recently reported an EBITDA of $22.5 million and $5.4 million of net income. The company has $6 million interest
Mandarinka [93]

Answer:

$8.2 million

Explanation:

As per given data

EBITDA         $22.5

Net Income    $5.4 Million

Interest Expense = $6 million

Tax rate = 35%

As we know the Tax is deducted from the income before tax to calculate the net income. We will calculate the Earning before tax first.

EBT = Net Income x 100% / ( 100% - 35% )

EBT = 5.4 million x 100% / 65%

EBT = $8.3 million

Now we need to calculate the Earning Before interest and Tax

EBIT = EBT + Tax Expense = $8.3 million + $6 million = $14.3 million

The Difference between EBIT and EBITDA is depreciation and amortization expense.

Depreciation and Amortization expense = EBITDA - EBIT = $22.5 million - $14.3 million = $8.2 million

3 0
3 years ago
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales a
Yuliya22 [10]

Answer:

Since there is not enough room here, I prepared the general ledger, the accounts receivable ledger and the schedule of accounts receivable in an excel spreadsheet (attached).    

Explanation:

Download pdf
6 0
3 years ago
If an investment is producing a return that is equal to the required return, the investment's net present value will be:
harina [27]
The net present value would be zero.

Hope this helped! :)
4 0
3 years ago
Other questions:
  • Reyes Company had a gross profit of $720,000, total purchases of $840,000, and an ending inventory of $480,000 in its first year
    12·1 answer
  • The dominant business ethic in corporate communications is _____, which is "a principle that allows those affected by administra
    10·1 answer
  • Which of the following statements are in accurate?1. There is substantial agreement about how and when markets fail.2. There is
    13·1 answer
  • The town of snowville is concerned that its rental property market is overpriced. the demand for rental housing is p = 48 - 2q,
    13·1 answer
  • Explain the difference between objectives and goals, and give examples of each.
    15·1 answer
  • You are working on a team whose mission is to reduce the time it takes to deliver customer orders Your team is examining all ste
    9·1 answer
  • As a manager of a retail-clothing store, Lance favors detailed job descriptions, formal rules and regulations, detailed records,
    6·1 answer
  • Are social media videos a good way to market yourself to employers
    11·2 answers
  • When sales exceed production and the company uses the LIFO inventory flow assumption, the net operating income reported under va
    12·1 answer
  • Catalog companies are committed to selling at the prices printed in their catalogs. a. If a catalog company finds its inventory
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!