Accounts receivable (gross)InventoryTotal current assetsTotal current liabilitiesCredit salesCost of goods soldCurrent ratioReceivables turnoverInventory turnover20211.000.000$850,000 $750,000 $650,0001.020,000980,000840,0002,100,000 2,000,000 1,700,0001.100.000 1,250,0006.420.000 6.240,000 5.430.0004,540,000 4,550,0003,950,000(b) Based on (1) current ratio, (2) receivables turnover ratio, and (3) inventory turnover ratio, what conclusion(s) can be drawn aboutthe company's liquidity?202121:120208.0 times4.5 times2020201918:18.9 times5.0 times.

Name: Accounts receivable (gross)InventoryTotal current assetsTotal current
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Description: Accounts receivable (gross)InventoryTotal current assetsTotal current liabilitiesCredit salesCost of goods soldCurrent ratioReceivables turnoverInventory turnover20211.000.000$850,000 $750,000 $650,0001.020,000980,000840,0002,100,000 2,000,000 1,700

Receivable or debtor turnover ratio is calculated by dividing turnover with the average receivable.…

Business

Accounting

Accounts receivable (gross) Inventory Total current assets Total current liabilities Credit sales Cost of goods sold Current ratio 2021 $850,000 Receivables turnover Inventory turnover 1.020.000 2020 $750,000 980.000 2020 2019 2.100.000 2,000,000 1,700,000 1,000,000 1.100.000 1.250,000 6.420.000 6.240,000 5.430.000 4,540,000 4,550,000 (b) Based on (1) current ratio, (2) receivables turnover ratio, and (3) inventory turnover ratio, what conclusionis) can be drawn about the company's liquidity? 2021 21 1 8.0 times 8.9 times 4.5 times 5.0 times $650,000 18:1 840,000 3,950,000

Accounts receivable (gross) Inventory Total current assets Total current liabilities Credit sales Cost of goods sold Current ratio 2021 $850,000 Receivables turnover Inventory turnover 1.020.000 2020 $750,000 980.000 2020 2019 2.100.000 2,000,000 1,700,000 1,000,000 1.100.000 1.250,000 6.420.000 6.240,000 5.430.000 4,540,000 4,550,000 (b) Based on (1) current ratio, (2) receivables turnover ratio, and (3) inventory turnover ratio, what conclusionis) can be drawn about the company's liquidity? 2021 21 1 8.0 times 8.9 times 4.5 times 5.0 times $650,000 18:1 840,000 3,950,000

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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Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING SUNDRY DEBTORS OMR 20000 CLOSING SUNDRY DEBTORS OMR 10000 What will be the Debtors Turnover Ratio (DTR)? a.16 b.6 c.5 d.8
Sales Cost of goods sold Accounts receivable 2021: 2020: 2018: 2018: 2021: 20:20: Compute trend percents for the above accounts, using 2017 as the bese year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable. Numerator: 2021: 2020: 2018: 2018: 2821 $ 553,453 284, 861 26,808 Numerator: Numerator: T 2017: Is the trend parcent for Net Sales favorable or unfavorable? I Trend Perent for Net Bales: I } J 2828 J I 184,986 21,060 2018: 2018: 2017: Is the trend percent for Cost of Goods Sold favorable or unfavorable? Trend Percent for Cost of Goods Bold: Denominator: 2019 $ 295,790 154,003 20,232 T " I Denominator: Trend Perent for Accounts Receivable: Denominator: 2018 $ 283,903 185,586 11,893 2017: Is the trend percent for Accounts Receivable favorable or unfavorable? 11 11 "H |||||| 11 11 11 2817 $ 148,000 75,939 10,170 11 Trend percent Trend parcant Trend percent aan | 20
The following data are taken from the financial statements of Colby Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 Accounts Receivable turnover Average collection period (b) 2022 $550,000 2022 2021 4,300,000 4,000,000 7.9 times $540,000 2021 7.5 times 46.2 days 48.7 days What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collections period.
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4. A Company has Net Sales of 2,000,000 for 2020, Accounts Recitable for 500,000 in 2020, and Accounts Receivable of 350,000 in 2019. Calculate the Accounts Receivable Turnover Ratio.
Turnover: $200 000,00 Cost of sales: $140 000,00 Profit before interest and tax: $12 000,00 Accounts receivable: $16 500,00 Accounts payable: $13 000,00 Inventory: $18 750,00 Bank/ (Overdraft): $4 000,00 Calculate Accounts receivable collection period Inventory holding period. Accounts payable payment period Current ratio Acid test ratio
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Please answer required 1,2,3
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32. Refer to Bellingham Incorporated's December 31, 2019 Balanoe Sheet shown below. Bellingham Incorporated Balance Sheet as of December a1, 2019 Assets Current Assets Cash Llabilities Current Uabitles S130,000 80,000 Accounts Payable Notes Payable S0,000 110,000 $200,000 Inventory Accounts Recelvables 40,000 Total Current Liabilitles Total Current Assets $250,000 Non-current Llabilities Debt 150,000 Owner's Equity Non-current Assets Plant and Equipment (Net) Patents (Net) 350,000 50,000 220,000 80,000 Common Stock Retained Earnings Total Assets $650.000 Total Liahilities and Owner's Equity 5650,000 Bellingham began 2019 with $240,000 in owner's equity. During the year they issued $30,000 in new common stock and paid $10,000 in dividends. If their net income for 2019 was $40,000, what was their retained earnings balance on December 31, 20187 O $30,000 $50,000 O S60,000 O $70,000
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