A business has: Net sales of $6,404,300; Cost of goods sold of $4,720,870; Accounts receivable of $685,000.What is the impact on cash flow of 5-day increase in accounts receivable days?O A decrease in cash flow by approximately $64,669.A decrease in cash flow by approximately $87,730.O An increase in cash flow by approximately $87,730.

Accounts Receivable Days is a metric used to evaluate the time it takes for the company to collect…

Answered: A business has: Net sales of…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter6: Statement Of Cash Flows

Section: Chapter Questions

Problem 14E

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Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
Sales reported on the income statement were $690,000. The accounts receivable balance declined $39,000 over the year. Determine the amount of cash received from customers.
Requirement: a. Explain why the bank balance has decreased by more than $100,000 in one month despite the business exceeding all sales and profit targets for the month by using following income statement and cash flow statement.
A. Assume that all sales are on account. If sales revenue was $18,000,000 and the average days in accounts receivable was 38 days for the last operating year, what would the average accounts receivable balance have been? a. $1,680,000 b. $1,500,000 c. $1,875,000 d. $18,000,000 B. If accounts receivable is projected to be $800,000 at the beginning of the next operating year and $1,100,000 at the end of the next operating year: would cash be generated by accounts receivable or needed to fund accounts receivable? And, by how much? a. $300,000 of cash needed to fund accounts receivable b. $1,100,000 of cash needed to fund accounts receivable c. $500,000 of cash needed to fund accounts receivable d. $300,000 of cash generated by accounts receivable
Cash and accounts receivable for Adams Company are as follows: Cash $84,420 Accounts receivable (net) 38,428 What are the amounts and percentages of increase or decrease that would be shown with horizontal analysis? Dollar Change Percent Change Account Cash Current Year Accounts Receivable Prior Year $67,000 73,900 % % increase decrease
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Cash and accounts receivable for Adams Company are as follows: Current Year Prior Year Cash $88,172 $65,800 Accounts receivable (net) 32,424 57,900 What are the amounts and percentages of increase or decrease that would be shown with horizontal analysis? Account Dollar Change Percent Change Cash $fill in the blank 1 fill in the blank 2 % Accounts Receivable $fill in the blank 4 fill in the blank 5 %
You are given the following information for Ortiz Corporation: Decrease in inventory $ 610 Decrease in accounts payable 255 Increase in notes payable 240 Increase in accounts receivable 270 Did cash go up or down? By how much?
Concord Corporation had the following transactions that took place during the year: I. Recorded credit sales of $3050 I. Collected $1830 from customers III. Recorded sales returns of $610 and credited the customer's account. What is the total effect of these transactions on free cash flow? Cannot be determined O Increase Decrease O No Effect
You are given the following information for Ortiz Corporation: Decrease in inventory $ 610 Decrease in accounts payable 255 Increase in notes payable 240 Increase in accounts receivable 270 1. Did cash go up or down and by how much? 2. Classifyy each event as a source of cash.
A company has net sales of $489,600 and average accounts receivable of $40,800. What is its accounts receivable turnover? a. 0.08 c. 1,341.00 e. 111.78 b. 30.41 d. 12.00

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