Tungsten Company, Incorporated, sells heavy construction equipment. There are 15,000 shares of capital stock outstanding. The annual fiscal period ends on December 31. The following condensed trial balance was taken from the general ledger on December 31, Current Year: Account Titles Cash Accounts receivable (net) Inventory, ending Operational assets Accumulated depreciation Liabilities Capital stock Retained earnings, January 1, Current Year Sales revenue Sales returns and allowances Cost of goods sold Selling expense Administrative expense Bad debt expense Sales discounts Income tax expense Totals Debit $34,400 Credit 16,300 53,500 41,800 $18,500 25,600 73,800 14,080 148,500 6,700 79,200 15,300 15,700 2,700 6,800 8,080 $280,480 $280,480 2. The beginning balance in Accounts Receivable (net) was $16,400. Compute the receivables turnover ratio. Numerator Denominator Receivables Turnover Ratio times
Tungsten Company, Incorporated, sells heavy construction equipment. There are 15,000 shares of capital stock outstanding. The annual fiscal period ends on December 31. The following condensed trial balance was taken from the general ledger on December 31, Current Year: Account Titles Cash Accounts receivable (net) Inventory, ending Operational assets Accumulated depreciation Liabilities Capital stock Retained earnings, January 1, Current Year Sales revenue Sales returns and allowances Cost of goods sold Selling expense Administrative expense Bad debt expense Sales discounts Income tax expense Totals Debit $34,400 Credit 16,300 53,500 41,800 $18,500 25,600 73,800 14,080 148,500 6,700 79,200 15,300 15,700 2,700 6,800 8,080 $280,480 $280,480 2. The beginning balance in Accounts Receivable (net) was $16,400. Compute the receivables turnover ratio. Numerator Denominator Receivables Turnover Ratio times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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