The following is a schedule of the projected unit sales of Western Company, which manufactures casual wear. Each unit sells for
1 answer:
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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 =
Average accounts receivable =
Average accounts receivable =
Average accounts receivable = $162,500
Accounts turnover ratio =
Accounts turnover ratio =
Accounts turnover ratio = 8 times
Answer:
It is less expensive to keep your old car.
Explanation:
We have been given that you currently drive 250 miles per week in a car that gets 24 miles per gallon of gas.
1 year equals 52 weeks.
5 years equals 260 weeks.
The old car gives a mileage of 24 miles per gallon of gas.
Therefore, the total of using old car for 5 years is $18979.16.
We are told that new car gives a mileage of 53 miles per gallon.
Since the cost of using new car for 5 years is greater than cost of using old car for 5 years, therefore, it is less expensive to keep your old car.