Answer and Explanation:
The computation is shown below:
a. The receivables Turnover Ratio and Inventory Turnover Ratio is
receivables Turnover Ratio is
= Net credit sales ÷ average account receivable
= $86,000 ÷ ($6,500 + $6,900) ÷ 2
= $86,000 ÷ $6700
= 12.84 times
Inventory turnover ratio is
= Cost of goods sold ÷ average account receivable
= ($86,000 × (1 - 49.8%) ÷ ($7,280 + $7,300) ÷ 2
= $43,172 ÷ $7,290
= 5.92 times
b. The average days to collect receivables and inventory is
For receivables
= 365 ÷ 12.84 times
= 28.43 days
For inventory
= 365 ÷ 5.92
= 61.66 days
Answer:
Journal entry.
Debit creditors account with $15,000 and credit company's sales account with $15,000
Being quarterly journal subscription paid in advance last year.
Explanation:
The advance subscription payments customers are taken as creditors of the company. The company owes them the service of mailing the quarterly journals to them. The total creditors payment ($45,000) will be recorded as credit entry in the books of the company's creditors account and as the company discharges the liability, the amount is passed to debit side of the creditor's account. We assume equal quarterly subscription amount, which will result in $15,000 for each quarter in a year.
It is given that on July 1, Cooper Corporation r<span>eceived $20,000 from Smith Industries in exchange for services performed. The accounting entries that Cooper Corporation should make to record this event is:
Cash $20,000
Service Revenue $20,000
It is because Cooper Corporation received a service made by the
Smith Industries, thus it increased the cash or debited the cash account and there is increase on its income (credit side).</span>
Answer:
It shows a increment of 19.84% in net sales revenue.
Explanation:
In the horizontal analysis, the changes in the items of the financial statement should be recorded that would be proportionate to the sales amount.
The computation is shown below:
= (Difference in sales for two years ÷ last year sales) × 100
= ($100,000 ÷ $504,000) × 100
= 19.84%
Th difference of sales in two years is computed by
= Net Sales in 2017 - Net sales in 2016
= $604,000 - $504,000
= $100,000
It shows a increment of 19.84% in net sales revenue.
Answer:
Future Value= $4,189.30
Explanation:
Giving the following information:
Investment= $700 annual
Interest rate= 9%
Frances decides that she will continue to do this for the next 5 years.
To calculate the final value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {700*[(1.09^5)-1]} / 0.09
FV= $4,189.30