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borishaifa [10]
3 years ago
8

The 2021 income statement of Anderson Medical Supply Company reported net sales of $12 million, cost of goods sold of $5.5 milli

on, and net income of $835,000. The following table shows the company's comparative balance sheets for 2021 and 2020: ($ in thousands) 2021 2020Assets Cash$440 $520 Accounts receivable 840 570 Inventory 1,250 1,050 Property, plant, and equipment (net) 3,100 2,820 Total assets$5,630 $4,960 Liabilities and shareholders’ equity Current liabilities$1,100 $970 Bonds payable 1,550 1,550 Common stock 1,700 1,700 Retained earnings 1,280 740 Total liabilities and shareholders' equity$5,630 $4,960 Required:Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.)Inventory turnover ratio timesReceivables turnover ratio timesAverage collection period days Asset turnover ratio times
Business
1 answer:
Andrei [34K]3 years ago
7 0

Answer:

Inventory turnover ratio = cost of goods sold / average inventory = $5,500,000 / [($1,250,000 + $1,050,000)/2] = 4.78 times

Receivables turnover ratio = net sales / average accounts receivable = $12,000,000 / [($840,000 + $570,000)/2] = 17.02 times

Average collection period days = 365 / receivables turnover ratio = 365 / 17.02 = 21.45 days

Asset turnover ratio = net sales / average total assets = $12,000,000 / [($5,630,000 + $4,960,000)/2] = 2.27 times

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monitta

to spend less money The company has tried to cut costs in several areas.

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Money is any commodity or verifiable record that is widely accepted in a given country or socioeconomic environment as payment for products and services and repayment of debts, such as taxes.

Money is defined as any good that is widely utilized and accepted in transactions involving the exchange of goods and services from one person to another. Economists distinguish three sorts of money: commodity money, fiat money, and bank money. Commodity money is a good whose worth serves as money's value.

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5 0
1 year ago
Can I Plss get some help on this
Lyrx [107]

If the unemployment rate is 10%, the relevant fiscal policy action would be to A. increase government spending.

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4 0
2 years ago
An inferior good is one for which _ _ in buyers income causes
yuradex [85]
An inferior good is one for which an increase <span> in buyers income causes</span> a decrease in demand.

Hope this helps !

Photon
3 0
3 years ago
Taggart Inc. is considering a project that has the following cash flow data. What is the projects payback? Year 0 1 2 3 Cash flo
nikdorinn [45]

Answer:

The period of payback of the project is 2.30 years. Therefore, the correct answer is C

Explanation:

We will computing the Cumulative Cash Flow from Year 0 to Year 3

Cumulative Cash Flow Year 0 = Cash Flow of Year 0

= -$1,150

Cumulative Cash Flow of Year 1 = Cash Flow of Year 1 + Cash Flow of Year 0

= $500 + (-$1,150)

= -$650

Cumulative Cash Flow of Year 2 =  Cash Flow of Year 2 + Cumulative Cash Flow Cash Flow of Year 1

= $500 + (-$650)

= -$150

Cumulative Cash Flow of Year 3 =  Cash Flow of Year 3 + Cumulative Cash Flow Cash Flow of Year 2

= $500 + (-$150)

= $350

Now, Computing the Pay back period with the formula:

Pay back period = 2 + (Cumulative Cash Flow of year 2 / Cash flow of year 3)

= 2 + (-$150/ $500)

= 2 +  0.3

= 2.3 years

5 0
3 years ago
A property is being appraised using the gross rent multiplier. A comparable property that rents for $150 per month recently sold
Helga [31]

Answer:

The sales price of the appraised property is $26,400

Explanation:

The sales price of of the appraised property can be expressed as;

SA=(A/C)×SC

where;

SA=selling price of the appraised property

A=appraised rent per month

C=comparable rent per month

SC=selling price of the comparable property

In our case;

SA=unknown

A=$165 per month

C=$150 per month

SC=$24,000

replacing;

SA=(165/150)×24,000=$26,400

The sales price of the appraised property is $26,400

3 0
3 years ago
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