3.RAM has net income of AED 12 million a profit margin of 6 percent, and an accounts receivablebalance of AED 15 million. What is the collection period?4. A firm has a debt-total asset ratio of 75 percent, net income 20 million and total assetsAED 800million What is the return on equity?

Answered: 3.RAM has net income of AED 12 million…

3.RAM has net income of AED 12 million a profit margin of 6 percent, and an accounts receivable balance of AED 15 million. What is the collection period?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A company has current assets of $92,000 (of which $37,000 is inventory and prepaid items) and…

A: The liquidity ratio indicates the ability of the business entity to pay out its current debt. It…

Q: What does the Accounts Receivable Turnover measure? Group of answer choices a)The net realizable…

A: The accounts receivable turnover ratio is one metric to watch closely as it measures how effectively…

Q: if uncollectible accounts are determined by the percent of sales method to be 2% of credit sales,…

A: To calculate the uncollectible account expense for 20X3 using the percent of sales method, you would…

Q: How do you calculate accounts receivable turnover? Select an answer. Take the beginning A/R balance,…

A: The accounts receivables turnover ratio is a sub-category of activity ratios, which indicates the…

Q: What is the accounts receivable turnover ratio? O 17.1 times 10.0 times 13.3 times 20.0 times

A: Financial ratios are those which provide a summary of the accounts of a company and helps an…

Q: Determine the following measures for 20Y2, rounding to one decimal place including percentages,…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: If the company has net sales (120000) D., Accounts receivable (16000) , So the collection period…

A: Net sales = 120000 Accounts receivable = 16000

Q: 1. Current assets is P20,000, current liabilities is P30,000. What is the current ratio? 2.…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: What is average payment period using balance sheet below? BALANCE SHEET INCOME STATEMENT ($ in…

A: Average payment period is ratio of Average account payable and daily credit purchase.

Q: PROBLEM 2.48. Prepare balance sheet from the following particulars : Current ratio 2.5, Acid test…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: What relationship exists between the average collection period and accounts receivable turnover?…

A: Introduction:- Accounts receivable turnover ratio tells the number of times a company collects its…

Q: Concord Ltd. had the following 2023 income statement data: Revenues $107,000 Expenses 46,100 In…

A: Cash flow from operating activities is a part of cash flow statement. Under this activity cash…

Q: Find out the company's cash ratio which has cash of P7500, cash equivalents of P26,250, accounts…

A: Cash ratio is an liquidity ratio, where it can be found out by adding cash available with…

Q: The quick ratio is 2.50 while the current ratio is 3.00. The only items presented as current assets…

A: >Financial ratios are the analysis ratios used to analyze the Financial Statement data.…

Q: 7. Victory airlines has a TAT ratio of 0.94 times (total assets turnover ratio); total depreciation…

A: Calculate Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA):Since we are…

Q: A firm starts with $5,000 of accounts receivables and ends the period with $4,000 of receivables. If…

A: Sales revenue: It can be defined as the amount received by an individual or entity against the sale…

Q: Which of the following would occur if a company factored $2,500,000 of receivables with a 2% fee?…

A: Formulas: Factoring expenses = Receivables * Fee rate

Q: Shown below is the balance sheet of Blockchain Services Ic., what is the acid ratio? Asset…

A: Acid test ratio is one of the liquidity ratio of business, which shows how much liquid assets are…

Q: Accounts Receivable, beg. 140,000.00; Accounts Receivable, end 75,000.00; Net Sales - 3,500,000.00.…

A: Formula: Cash Collection from Sales on Account = Beginning Accounts receivable + Credit sales -…

Q: ABC Corp accounts receivable, beginning and ending balances were P80,000 and P100,000, respectively.…

A: Credit sales = Ending accounts receivable + Write offs + Collections - Beginning accounts receivable

Q: Identify the ratio that is relevant to answering each of the following questions.a. How much net…

A: Hello, I am only answering first three sub-parts as per the policy and if you want the others to be…

Q: Complete the following balance sheet using the information given. Round account balances to the…

A: Financial ratio analysis is a method used to assess aspects of a company's performance financial…

Q: If your total assets equal $11,886 and your total liabilities equal $10,296; your solvency ratio is:…

A: To calculate the solvency ratio we will use the below formula Solvency ratio = Total assets/Total…

Q: Refer to the 10-K for Abercrombie & Fitch. Required: 1. What does the company report for the…

A: 1. **Determine the Current Year's Values**: - Before making projections for the next fiscal year,…

Q: Determine amounts a, b, and c. Additional information follows: ∙ Return on total assets is 16%…

A: Return on Total Assets = Net income/Average total assets Inventory turnover = Cost of goods…

Q: Hello In calculating average accounts receivable net from financials, would I include: (current year…

A: Accounts receivable are those outstanding balances that are due to a firm for goods and services…

Q: Given the following information, complete the balance sheet shown next. days Collection period Days'…

A: Ratio analysis:Ratio analysis, a financial scrutinising lens, reveals the complex links between…

Q: ABC's sales for this year were $32,250,000 and the Accounts Receivable Turnover Ratio was 15.5. Next…

A: Given, ABC's sales for this year were $32,250,000 & Accounts Receivable Turnover Ratio was…

Q: a Accounts Receivable Percentages Ss Revenue: $355,758.72; AR totals 5%. What amount is tied up in…

A: Note: As per the guidelines, only the first question has been answered. 9. Given, Gross Revenue =…

Q: Number of days' sales in receivables

A: Number of days' sales in receivables = 365 days * ((Opening Accounts receivable + Closing Accounts…

Q: 20. Total Liabilities 21. Bonds Payable 22. Amount of Ordinary Shares outstanding 23. Premium on…

A: Ratio analysis is done to analyze the financial performance of the company. For the given question…

Q: b. Comment on each of the ratios calculated in part (a). ABOVE IS THE QUESTION THAT I NEED ANSWER,…

A: Note: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…

Q: In capital ledger account, debit side total is OMR 50,000 and credit side total is OMR 30,000.…

A: Ledger account is the T formatted account in which financial transactions are posted account wise.…

Q: Report Date Scale Cash & cash equivalents Accounts receivable, gross Horizontal Analysis (Y3-Y2) Y3…

A: Horizontal and vertical analysis is a way of finding ratios that determine the performance of the…

Q: Use the following information to complete the balance sheet below. Sales are $8.7 million, capital…

A: Sales = s = $8.7 millionCapital Intensity Ratio = cir = 2Debt ratio = dr = 65%Fixed Assets Turnover…

Q: A company had net sales of $570,000, total sales of $720,000, and average accounts receivable, net…

A: Accounts receivable ratio is calculated to know how efficiently the company collects its debts…

Q: 1. a. The quick ratio is 0.09, cash is $10,000 and accounts receivable are $25,000. Accounts payable…

A: Quick ratio is a measure of company's liquidity which analyzes the company's ability to honor and…

Q: If cash is $5450, accounts receivable is $10059,notes payable is $5285, common stock is $1161 how…

A: Retained earnings is the amount which is retained or kept by the entity out of the net profits…

Q: if the net sales is P200,000 and the average accounts receivable is P50,000, what is the accounts…

A: it indicates the efficiency of the management because the greater the ratio the better the…

Q: A company has $50,000 in accounts receivable. The company estimates that 5% of accounts receivable…

A: The net realizable value of accounts receivable is the amount the company expects to collect after…

Question

3.RAM has net income of AED 12 million a profit margin of 6 percent, and an accounts receivable
balance of AED 15 million. What is the collection period?
4. A firm has a debt-total asset ratio of 75 percent, net income 20 million and total assetsAED 800
million What is the return on equity?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Novak Fashions needs to replace a beltloop attacher that currently costs the company $58,000 in annual cash operating costs. This machine is of no use to another company, but it could be sold as scrap for $3,128. Managers have identified a potential replacement machine, Euromat's Model HD-435. The HD-435 is priced at $93,000 and would cost Novak Fashions $38,000 in annual cash operating costs. The machine has a useful life of 8 years, and it is not expected to have any salvage value at the end of that time. Click here to view the factor table.
If net income was $12,000, interest expense was $6,000, and taxes were $2,000, what is the operating profit margin if sales were $60,000? (Express your answer to one decimal place.) Check Answer
Suppose the 2022 financial statements of 3M Company report net sales of $23.1 billion. Accounts receivable (net) are $3.2 billion at the beginning of the year and $3.25 billion at the end of the year. Compute 3M’s accounts receivable turnover. - Accounts Recievable turnover ratio=? (times) Compute 3M’s average collection period for accounts receivable in days - Average collection period =? (days)
14 - Which of the following is the formula to compute accounts receivable turnover? a) The formula is net sales / average net accounts receivable. b) O The formula is cost of goods sold / average inventory The formula is net credit sales / average inventory. d) O The formula is average net accounts receivable / one day's sales.
27. The average payment period of an organization is calculated by __________. a. Average payables / Daily credit purchases b. Average payables / Net purchases c. Accounts payables / Total purchases d. Opening account payable + Closing account payable /2
At January 1, 2025, Pembina Imports Inc. reported this information on its balance sheet. Accounts receivable Less: Allowance for expected credit losses 1. During 2025, the company had the following summary transactions related to receivables and sales. Pembina uses the perpetual inventory system. Pembina expects a return rate of 3%. 2. 3. 4. $696,000 5. 44,800 Sales on account amounted to $2,800,000. The cost of the inventory sold was $2,100,000. Goods with a total sales price of $44,800 and a cost of $33,600 were restored to inventory. Collections of accounts receivable were $2,464,000. Write-offs of accounts receivable deemed uncollectible, $50,400. Recovery of credit losses previously written off as uncollectible, $16,800.
19. The accounts receivable turnover is 8.14, and average net accounts receivable during the period is $400,000. What is the amount of net credit sales for the period? Brief Exercises Identify different types of receivables. BE8.1 (LO 1), C The following are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balan a. Sold merchandise on account for $64,000 to a customer. b. Received a promissory note of $57,000 for services performed. c. Advanced $10,000 to an employee. Record basic accounts receivable transactions. PEO AR Rooord the following transactions on the books of Jarvis Co. (Omit cost of goods sold entries.)
1. A company, extends credit to its customers. Total Sales is 2 Million, credit Sales is 850,000, Sales Return is 305,000, with percent of uncollectibility set at 4% What is the journal entry under percentage of net credit sales?
If I were to have accounts receivable in the millions and were $ 74 million at the beginning of year one. How do I compute the accounts receivable turnover for year2 and 1 and what does it mean by rounding to two decimal places? What part do I round off?
Solve from the following facts. (Round your answers to the nearest hundredth.) Current assets $ 14,000 Net sales $ 40,000 Accounts receivable $ 5,000 Total assets $ 38,000 Current liabilities $ 20,000 Net income $ 10,100 Inventory $ 4,000 a. Calculate Current ratio. b. Calculate Acid test. c. Calculate Average day’s collection. d. Calculate Asset turnover. e. Calculate Profit margin on sales.
A company currently has the following accounts: Cash: $7,000 Accounts Receivable (net): $11,000 Short-Term Investment: $3,000 Inventory: $3,000 Current Liabilities: $5,000 The company has just learned that a $4,000 accounts receivable will not be collectible. How will this change impact the current ratio? It will decrease from 4.8 to 4.0. It will increase from 4.2 to 5.0. It will decrease from 4.2 to 3.4. It will increase from 4.8 to 5.6.
Starwood Corporation has current assets of $410,000, total current liabilities of $960,000, net credit sales of $1,510,000, beginning accounts receivable of $86,000, and ending accounts receivable of $90,000. What is Starwood's accounts receivable turnover? Multiple Choice O 21.4 times 17.2 times 21.8 times 5.6 times