A Company has Net Sales of 2,000,000 for 2020, Accounts Recitable for 500,000 in 2020, and Accounts Receivable of 350,000 in 2019. Calculate the Accounts Receivable Turnover Ratio.
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Q: 1. Compute the accounts receivable turnover ratios and the number of days' sales in receivables…
A: Hi student Since there are multiple questions, we will answer only first question.
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A: Credit sales = total sales - cash sales = $500000 - 500000*2% = $490, 000
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A: Accounts receivable turnover ratio = Net Credit Sales / Average Accounts Receivables Sales in…
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A: Please see the white board for the understanding of the three ratios we have to calculate.
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A: Solution:- Calculation of Accounts receivable turnover ratio as follows:- The following formula used…
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4. A Company has Net Sales of 2,000,000 for 2020, Accounts Recitable for 500,000 in 2020, and Accounts Receivable of 350,000 in 2019. Calculate the Accounts Receivable Turnover Ratio.
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- Using the following select financial statement information from Mover Supply Depot, compute the accounts receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Mover Supply Depot if the industry average is 4 times?Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?Ratio Analysis The following information was taken from Nash Inc.s trial balances as of December 31, 2018, and December 31, 2019. Required: 1. Calculate the net profit margin and accounts receivable turnover for 2019. ( Note: Round answers to two decimal places.) 2. How much does Nash make on each sales dollar? 3. How many days does the average receivable take to be paid (assuming all sales are on account)?
- The following select financial statement information from Vortex Computing. Compute the accounts receivable turnover ratios and the number of days sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Vortex Computing if industry average for accounts receivable turnover ratio is 4 times and days sales in receivables ratio is 85 days?In 2020, HK company has net credit sales of 925,000S for the year. It had a beginning accountreceivable (net) balance of 38,000$ and an ending account receivable (net) balance of 36,000$. The HK company account receivable turnoveris a. 24.3 Ob. 25.7 Dic. 25 d. 22Following is some financial information of 250R Corp: 250 CORP Statement of Income For the years ended December 31, 2020 and 2021 Year Ended 31.12.2021 Sales Revenues Cost of Goods Sold Gross Margin Salaries expense Depreciation expense Interest expense Net income Long-term borrowings Accounts receivable Property, plant & equipment (PPE): Cost Accumulated Depreciation $750,000 (300,000) $450,000 (75,000) (70,000) (30,000) $275,000 Some Selected Balance Sheet Data As at 31.12.2021 $300.000 $525,000 $350,000 210,000 Year Ended 31.12.2020 $500,000 (200,000) $300,000 (50,000) (70,000) (30,000) $150,000 As at 31.12.2020 $300.000 $250.000 $350,000 140,000
- Choose the correct answer and pls provide the formula A Company’s net accounts receivable were P250,000 as of December 31, 2018, and P300,000 as of December 31, 2019. Net cash sales for 2019 were P100,000. The accounts receivable turnover for 2019 was 5.0. What were the Company’s total net sales for 2019? *a. P1,175,000.00b. P1,275,000.00c. P1,375,000.00d. P1,475,000.00e. P1,575,000.00At the beginning of 2021, Clay Ventures has total accounts receivable of $100,000. By the end of 2021, Clay reports net credit sales of $900,000 and total accounts receivable of $200,000. What is the receivables turnover ratio for Clay Ventures? a. 2.0. b. 4.5. c. 6.0. d. 9.0.In 2020, HK company has net credit sales of 925,000$ for the year. It had a beginning account receivable (net) balance of 38,000$ and an ending account receivable (net) balance of 36,000$, account receivable turnover (average collection period) in days is O a. 14.4 b. 16.4 O C. 12 O d. 13
- Calculate the Accounts Receivable Turnover for 2021 using the following information: Net Sales Beginning Accounts Receivable Ending Accounts Receivable 4.29 7.5 8.58 10.00 2021 $30,000 $4,000 $3,000In 2020, Sahara Company has net credit sales of $923,795 for the year. It had a beginning accounts receivable (net) balance of $38,275 and an ending accounts receivable (net) balance of $35,988. Instruction: Compute Sahara Company’s (a) Accounts receivable turnover. (b) Average collection period in days.5. Blige Corporation had sales revenue of $12,000,000 in 2019 and $15,000,000 in 2020. Accounts receivable were $1,800,000 at the end of 2019 and $2,000,000 at the end of 2020. Required (a) Calculate the accounts receivable turnover ratio for 2019 and 2020. (b) Has the management of accounts receivable improved or worsened from 2019 to 2020? (c) What are the advantages and disadvantages of selling goods on credit? (d) How much cash did Blige Corporation collect from its customers in 2020? (e) If sales in 2021 were expected to be $22,500,000, what would you expect accounts receivable to be at the end of 2021? (f) Does a major increase in accounts receivable create any cash man- agement issues?
