5Griffen Co. has an inventory turnover rate of 7, and an accounts receivableturnover rate of 5. Assuming 365 days in a year, the period of time required forGriffen to convert its inventory into cash through normal business operations isapproximately:21 days.abсd52 days.4 months.2.5 months.

Inventory Turnover Rate: Inventory Turnover Rate is the rate that calculated by cost of goods sold…

Answered: 5 Griffen Co. has an inventory turnover…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Accounts receivable management This table,, shows that Blair Supply had an end-of-year accounts receivable balance of $300,060 The table also shows how much of the receivables balance originated in each of the previous six months. The company had annual sales of $2.40 million and it normally extends 30-day credit terms to its customers. a. Use the year-end total to evaluate the firm's collection system. b. If 70% of the firm's sales occur between July and December, would this affect the validity of your conclusion in part a? Explain. a. The average collection period is days. (Round to two decimal places.) Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Month of Amounts receivable origin July $3,880 August 2,005 September 33,995 October 15,150 November 52,005 December 193,025 Year-end accounts receivable $300,060 - X
Use the attachment to answer the following Accounts receivable days outstanding at the end of Year 2 is closest to: a) 30.6 days b) 26.0 days c) 27.0 days d) 6.1 days
18. A company had net sales of $31,500, beginning accounts receivable of $3,100 and ending accounts receivable of $2,300 for the current period. Its days' sales uncollected is equal to: A. 11.7 daysB. 23.3 daysC. 31.3 daysD. 42.5 days
3
During its first year of operations, Fertig Company had credit sales of $3,000,000, of which $400,000 remained uncollected at year- end. The credit manager estimates that $18,000 of these receivables will become uncollectible. The accounts receivable turnover is 10 times and average collection period is 36.5 days. Assume that average net accounts receivable were $300.000. Explain what these measures tell us. BI V T, TI E LE E H I 99 H E à ला 11 A A OWord(s)
SheridanStore had a balance in the Accounts Receivable account of $510000 at the beginning of the year and a balance of $690000 at the end of the year. Net credit sales during the year amounted to $642000o. The accounts receivable turnover was a.10.3 times. b.126 times. c.10.7 times. d.5.4 times.
A firm has sales of $1.4 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $205,000. What is the average collection period? (Use 365 days in a year. Do not round intermediate calculation. Round the final answer to the 1 decimal place.) Average collection period days 76thjbnn
10. Naronath & Co. has a DSO of 30 days, and its annual sales are $6,500,000. What is its accounts receivable balance? Assume that it uses 365-day year." a) $17,808 b) $216,666 O c) $534,247 O d) $593,607 O e) None of the above 11. LSP Co. has net income of $20.000 and total assets of $100,00O, The
A company had Sales and Cost of Sales last year of $600 million and $300 million respectively. All sales were on credit terms. If its customers paid their invoices on average at 16 days, what is the company’s average Accounts Receivable balance? (Assume a 365-day year.) a. $26.3 million b. $13.1 million c. $9.4 million d. $18.7 million
B&B Mining has a DSO of 40 days, and its annual sales are 7,300, 000. What is its accounts receivable balance? Assume that it uses a 365-day year.
A firm has accounts receivables of R352 476, sales just ended of R3 050 291. What is the average collection period? Assume 365 days in a year
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