Lotus fabrics wants to forecast its accounts receivable for the year 2021 with the following annual information. Also state two advantages of forecasting of accounts receivables for the entity. Receivable days assumption = 60 days Payable days assumption = 72 days Forecasted revenue = 325,000 Forecasted cost of goods sold = 180,250 Choices: 51,195 53,425 49,800 41.705
Q: At the beginning of 2019, Blue Devil Inc. had net Accounts Receivable of $49,000. At the end of…
A: Quick ratio: The financial ratio which evaluates the ability of a company to pay off the instant…
Q: In the year 2020 LNG company had a net sale of RO19,800 million for the year of which RO17600 are…
A: The average collection period is the average number of days between the date of credit sale and the…
Q: ABC company's records included the following, assume 365 days in a year: Accounts Receivable,…
A: Average Accounts Receivables = (Beginning Accounts Receivables + Ending Accounts Receivables ) /2…
Q: Jinx Company provided the following information for 2013 in relation to accounts receivable:…
A: Formula: Net sales = Credit sales - Sales returns Deduction of sales returns from sales derives the…
Q: DVAH Company estimates that 6% of accounts receivable will be uncollectible. The total credit sales…
A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…
Q: 5. Blige Corporation had sales revenue of $12,000,000 in 2019 and $15,000,000 in 2020. Accounts…
A: Financial manager has to manage various financial aspects of the company. One of the major areas is…
Q: The following information relates to Jhon Co.’s accounts receivable for 2020: Accounts receivable,…
A: Accounts receivable: It can be defined as the amount that is owed by the customers from the business…
Q: Xanax Inc expects the following transaction in 2020. Their first year of operations. ·…
A: Cash balance can be calculated by adding all proceeds and deducting all expenses. Proceed from sale…
Q: At the beginning of 2021, Clay Ventures has total accounts receivable of $100,000. By the end of…
A: Receivables turnover ratio = Net credit sales / Average Accounts Receivable where, Average Accounts…
Q: DVAH Company estimates that 6% of aCcounts receivable will be uncollectib cotal credit sales for the…
A: Solution: Adjusted balance of allowance accounts = accounts receivable * 6%
Q: average investment in accounts receivable?
A: Average investment in accounts receivable = Accounts receivable average collection period * Annual…
Q: Company ZT reported for the fiscal year ended 2020, a $51970 and $62400 beginning and ending…
A: The average age of inventory is the average number of days it takes for a firm to convert inventory…
Q: J & B Company uses the percentage of sales approach to estimate its uncollectible accounts. The…
A: Credit sales = total sales - cash sales = $500000 - 500000*2% = $490, 000
Q: Millennial Manufacturing has net credit sales for 2018 in the amount of $1,453,630, beginning…
A: Accounts receivable turnover ratio = Net Credit Sales / Average Accounts Receivables Sales in…
Q: The following data exists for Sandhill Company. 2020 2019 Accounts Receivable $60,000…
A: Solution: Average accounts receivables for 2020 = ($60,000 + $84,000) / 2 = $72,000 Accounts…
Q: Suppose the following information was taken from the 2022 fınancial statements of FedEx Corporation,…
A: Account receivable turnover indicates the rate of collection of accounts receivable in a year.
Q: The following information was extracted from ABC Ltd’s financial statements for the year ended 31…
A: Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is…
Q: Millennial Manufacturing has net credit sales for 2018 in the amount of $1,453,630, beginning…
A: Accounts receivable turnover ratio is a type of activity ratio, which is defined as the measurement…
Q: accounts receivable balance
A: SOLUTION:- Receivables Period = 46 Credit sales = $5,840,000…
Q: Ill Company provides the following data for the year 2020: Cash sales - 500,000; Collection from…
A: The gross sales are calculated as sum of net sales, sales discount and allowance and sales returns.
Q: The following are excerpts from the financial statements of 2018 and 2019 of Mandela Corporation.…
A: 1. Accounts Receivable Turnover ratio= Net sales/Average Accounts receivable 2.No. Of days sales…
Q: Zane Corporation has an inventory conversion period of 48 days, an average collection period of 26…
A: Cash conversion cycle(CCC) will be CCC =Inventory conversion period + Average collection period…
Q: Mr. Husker’s Tuxedos Corp. ended the year 2021 with an average collection period of 33 days. The…
A: Average Collection period = Average receivables x 365 / Credit salesHence, average receivables =…
Q: A. Assume that all sales are on account. If sales revenue was $18,000,000 and the average days in…
A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…
Q: NG has the following financial data as of December 31, 2019: Gross sales = P250,000.00 Sales…
A: Accounts receivable turnover ratio is calculated by dividing days in a year by average collection…
Q: Determine the managerial balance sheet for the FY 2021.
A: Answer
Q: An analyst has obtained the following information regarding ABC, Inc. Using this information, he…
A: Operating cycle is calculated as below: Now, Cash conversion cycle (CCC) will determine Days…
Q: Zane Corporation has an inventory conversion period of 79 days, an average collection period of 43…
A: Calculate the cash conversion cycle as follows: Cash conversion cycle = Inventory period +…
Q: Suppose the following information was taken from the 2022 financial statements of FedEx Corporation,…
A: Accounts receivable turnover [in times] = Credit sales for 2022 / Average net accounts receivable…
Q: Memphis Co. reported the following information for 2021: Sales revenue: $780,000 Interest revenue…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Space Tech Inc. total annual sales in 2020 were $ 40,000,000 The year ending 12/31/20 account…
A: Allowance for doubtful accounts balance required = Total annual sales x 2.5% = $40000000*2.5% =…
Q: Jackson, Inc. had net sales of $900,000 during 2019. On January 1, 2019, Jackson's accounts…
A: Solution: Average accounts receivable = (Beginning +ending) / 2 = (160000 + 200000) / 2 = $180,000
Q: Suppose the following information was taken from the 2022 financial statements of FedEx Corporation,…
A: Days in collection of account receivable means the number of days which we take to recover the…
Q: A company reports the following data relative to accounts receivable: Average accounts receivable of…
A: The accounts receivable turnover ratio is the ratio that measures the net credit sales as a multiple…
Q: Bulalugaw's net sales for 2020 is 240,000. 30% of it was on credit. In 2019 their accounts…
A: Accounts receivable turnover ratio is a type of activity ratio which is computed to check the…
Q: Company ZT reported for the fiscal year ended 2020, a $51970 and $62400 beginning and ending…
A: Here, Note: As nothing is mentioned in the question regarding no. of days in an year, we are…
Q: Blige Corporation had sales revenue of $12,000,000 in 2019 and $15,000,000 in 2020. Accounts…
A: Ratios are the measures of performance of the items of the statement of profit & loss and…
Q: Based on the above information, NUBD is forecasting March 2021 total cash receipts from credit sales…
A: Accounts receivable from January sales = Beginning accounts receivable x 1/4 = 300000*1/4 = P75,000…
Q: The company wants to assess the account receivable outstanding at the end of December 2016. During…
A: Accounts Receivable Payment PEriod = 365/Account Receivable turnover ratio Accounts Receivable…
Q: If Vabasa, Inc. has an average collection period (ACP) of 52.5 days (assume a 360 day year) and…
A: Average Collection Period helps to know the trend of collection of dues. The formula of Average…
Q: The following information was extracted from ABC Ltd’s financial statements for the year ended 31…
A: Cash forcasting is a plan that shows flow of cash in and out of organisation. It shows the future…
Q: The Suitter Company is a small company producing suit cases. The followings are the company’s…
A: Account Receivables - It refers to the amount that company would to receive from their customer on…
Q: The following data are taken from the financial statements of Colby Company. Accounts receivable…
A: Introduction: Financial statements include specific information about a company's operations and…
Q: Zane Corporation has an inventory conversion period of 90 days, an average collection period of 34…
A: a. Cash conversion cycle = Inventory turnover day + Receivables day – Payables day
Q: 2022 2021 Average accounts receivable P 400,000 P 416,000 Net credit sales P2,600,000 P3,100,00C
A: 1) Account Receivable Turnover Ratio = Net Credit Sales/ Average account receivable 2) The…
Q: For the month of November 2020, the records of Libra show the following information: Accounts…
A: Credit sales = Ending accounts receivable + Cash received from accounts receivable - Beginning…
Q: Ben Corp has the following annual information: Receivable days assumption = 55 days Payable days…
A: Forecast of account receivables formula: Revenue which was forecasted * (Receivables in days / 365…
Q: 15. Noreen Company provided the following information for 2020: Accounts receivable - January 1…
A: Amortized cost of Accounts receivable = Ending Accounts receivable - Estimated uncollectible…
Q: 5. Blige Corporation had sales revenue of $12,000,000 in 2019 and $15,000,000 in 2020. Accounts…
A: Accounts Receivable Turnover Ratio is also known as Debtors…
Step by step
Solved in 2 steps
- Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?The following select financial statement information from Candid Photography. 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 Candid Photography if industry average for accounts receivable turnover ratio is 3 times and days sales in receivables ratio is 150 days?Choose the letter of answer and solution A company reports the following data relative to accounts receivable: Average accounts receivable of P400,000.00 and P416,000.00 in FYs 2021 and 2020, respectively; and Net Credit Sales of P2,600,000.00 and P3,100,000.00 in FYs 2021 and 2020, respectively. The term of sale are net 30 days. Compute the accounts receivable turnover and the collection period in FY 2021. * a. 6.5 times and 56.2 daysb. 7.45 times and 49 daysc. 7.5 times and 56.2 daysd. 6.5 times and 49 days
- The following is select financial statement information from Vortex Computing: Year Net Credit Sales Ending Accounts Receivable 2018 $1,557,200 $398,000 2019 $1,755,310 $444,400 2020 $1,865,170 $500,780 Compute the accounts receivable turnover ratios and the number of days’ sales in receivables ratios for 2019 and 2020 (round answers to two decimal places): 2019 Accounts Receivable Turnover = ["", "", "", ""] times. 2019 Days' Sales in Receivables = ["", "", "", ""] days. 2020 Accounts Receivable Turnover = ["", "", "", ""] times. 2020 Days' Sales in Receivables = ["", "", "", ""] days. What do the outcomes tell a potential investor about Vortex Computing, if 2020 industry average for accounts receivable turnover ratio is 4.00 times and days’ sales in receivables ratio is 91.25 days? It takes Vortex Computing ["", "", ""] its competitors in the industry to collect on accounts receivable. If a lender were deciding between companies,…4. The following select financial statement information from Hogge Computing. Compute the accounts receivable turnover ratios and the number of days' sales in receivables ratios for 2021 and 2022 (round answers to two decimal places). Year 2020 2021 2022 2021: Net Credit Sales 2022: $1,557,200 $1,755,310 $1,965,170 Accounts Receivable Turnover Ratio: • Days' Sales: days Accounts Receivable Turnover Ratio: Days' Sales: days times times Ending Accounts Receivable $397,000 $465,200 $505,780The following is select financial statement information from Vortex Computing: Year Net Credit Sales Ending Accounts Receivable 2018 $1,557,200 $398,000 2019 $1,755,310 $444,400 2020 $1,865,170 $500,780 Compute the accounts receivable turnover ratios and the number of days’ sales in receivables ratios for 2019 and 2020 (round answers to two decimal places): 2019 Accounts Receivable Turnover = ["", "", "", ""] times. 2019 Days' Sales in Receivables = ["", "", "", ""] days. 2020 Accounts Receivable Turnover = ["", "", "", ""] times. 2020 Days' Sales in Receivables = ["", "", "", ""] days.
- In 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.The following information relates to Jhon Co.’s accounts receivable for 2020:Accounts receivable, 1/1/20 650,000Credit sales for 2020 2,700,000Sales returns for 2020 75,000Accounts written off during 2020 40,000Collections from customers during 2020 2,150,000Estimated future sales returns at 12/31/20 50,000Estimated uncollectible accounts at 12/31/20 110,000 What amount should Jay report for accounts receivable, before allowances for sales returns and uncollectible accounts, at December 31, 2020? __________1. 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?
- Ben Corp has the following annual information: Receivable days assumption = 55 days Payable days assumption = 69 days Forecasted revenue = 263,500 Forecasted cost of goods sold = 114,780 Forecast the accounts receivables.Original Media Sign Incorporated sells on account. Recently, Original reported the following figures Net Credit Sales Net Receivables at end of year Read the requirements. $ 2024 2024 545,100 $ 38,900 2023 Y 602,500 40,100 Requirement 1. Compute Original's days' sales in receivables for 2024. (Round to the nearest day.) First calculate the accounts receivable turnover. (Abbreviations used: AR turn = accounts receivable turnover ratio, Cash Cash including cash equivalents; ST invest = short-term investments. Round the accounts receivable turnover ratios to two decimals, X.XX.) G = AR turnAn analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to estimate the company's Accounts Payable. Sales = $93,398Cost of Goods Sold (COGS) = $36,052Cash Cycle = 22 daysOperating Cycle = 86 daysAccounts Receivable Period = AR Period = Average Collection Period (ACP) = 40 daysWhat is the company's Accounts Payable balance?