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7. Purchases during the period was $2,700,000. Average accounts payable amounted to $150,000. Compute for accounts payable turnover. Compute for average payment period. ● Procopted bal

7. Purchases during the period was $2,700,000. Average accounts payable amounted to $150,000. Compute for accounts payable turnover. Compute for average payment period. ● Procopted bal

FINANCIAL ACCOUNTING
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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7. Purchases during the period was $2,700,000. Average accounts payable amounted to 150,000. Compute for accounts payable turnover. Compute for average payment period. 8. Presented below are the Statements of Financial Position of Vickie Merchandising, for the past two calendar years, ending 2013 and 2014. Vickie is on the process of analyzing its financial statements in order to ascertain changes in each of its account balances. Vickie would want to identify account balances whose changes are worth investigating. Cash Assets Marketable Securities Accounts Receivable Merchandise Inventory Prepaid Expenses Total Current Assets. Property, Plant, and Equipment (net) Total Assets Vickie Merchandising Statements of Financial Position December 31 Liabilities and Owner's Equity Accounts Payable Salaries Payable Utilities Payable Taxes Payable Total Current Liabilities Notes Payable (due 2016) Total Liabilities Owner, Capital Total Liabilities and Owner's Equity 2014 ℗ 125,000 45,000 85,000 50,000 4,000 ℗ 309,000 450,000 P 759,000 30,000 20,000 10,000 15,000 ℗ 75,000 300,000 ℗ 375,000 384,000 ℗ 759,000 2013 112,000 40,000 77,000 45,000 2,000 ℗ 276,500 300,000 P 576,500 ℗ 18,500 14,000 8,000 15,000 ℗ 55,000 300,000 355,000 221,000 ℗ 576,500 Prepare a common size statement of financial position for Vickie Merchandising, for both 2013 and 2014. Analyze the changes in each account and comment if Vickie would need to further investigate on the changes of that account.
Transcribed Image Text:7. Purchases during the period was $2,700,000. Average accounts payable amounted to 150,000. Compute for accounts payable turnover. Compute for average payment period. 8. Presented below are the Statements of Financial Position of Vickie Merchandising, for the past two calendar years, ending 2013 and 2014. Vickie is on the process of analyzing its financial statements in order to ascertain changes in each of its account balances. Vickie would want to identify account balances whose changes are worth investigating. Cash Assets Marketable Securities Accounts Receivable Merchandise Inventory Prepaid Expenses Total Current Assets. Property, Plant, and Equipment (net) Total Assets Vickie Merchandising Statements of Financial Position December 31 Liabilities and Owner's Equity Accounts Payable Salaries Payable Utilities Payable Taxes Payable Total Current Liabilities Notes Payable (due 2016) Total Liabilities Owner, Capital Total Liabilities and Owner's Equity 2014 ℗ 125,000 45,000 85,000 50,000 4,000 ℗ 309,000 450,000 P 759,000 30,000 20,000 10,000 15,000 ℗ 75,000 300,000 ℗ 375,000 384,000 ℗ 759,000 2013 112,000 40,000 77,000 45,000 2,000 ℗ 276,500 300,000 P 576,500 ℗ 18,500 14,000 8,000 15,000 ℗ 55,000 300,000 355,000 221,000 ℗ 576,500 Prepare a common size statement of financial position for Vickie Merchandising, for both 2013 and 2014. Analyze the changes in each account and comment if Vickie would need to further investigate on the changes of that account.
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