FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Step 1: Understanding of financial ratios
VIEW Step 2: To compute-Sales
VIEW Solution
VIEW Step 3: To compute-COGS
VIEW Step 4: To compute-Total liabilities & equity
VIEW Step 5: To compute-Inventory
VIEW Step 6: To compute-Accounts receivables
VIEW Step 7: To compute-Fixed assets
VIEW Step 8: To compute-Cash
VIEW Step 9: To compute-Current liabilities
VIEW Step 10: To compute-Common stock
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- Nonearrow_forwardTaft Technologies has the following relationships: Annual sales 1,200,000.00 Current liabilities 375,000.00 Days sales outstanding (DSO) (365-day year) 40 Inventory turnover ratio 4.8 Current ratio 1.2 The company’s current assets consist of cash, inventories, and accounts receivable. How much cash does Taft have on its balance sheet?arrow_forwardBALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data: Debt ratio: 50% Current ratio: 1.8x Total assets turnover: 1.5x Days sales outstanding: 36.5 days Gross profit margin on sales: (Sales Cost of goods sold)/Sales = 25% Inventory turnover ratio: 5x "Calculation is based on a 365-day year. Cash Accounts receivable Inventories Fixed assets Total assets Sales Balance Sheet $300,000 Accounts payable Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold 60,000 97,500arrow_forward
- An analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to estimate the company's Accounts Payable. Sales = $93,398Cost of Goods Sold (COGS) = $36,052Cash Cycle = 22 daysOperating Cycle = 86 daysAccounts Receivable Period = AR Period = Average Collection Period (ACP) = 40 daysWhat is the company's Accounts Payable balance?arrow_forwardComplete the balance sheet and sales information using the following financial data: Total assets turnover: 1.1x Days sales outstanding: 73.0 daysa Inventory turnover ratio: 4x Fixed assets turnover: 3.0x Current ratio: 2.5x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 20% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answers to the nearest dollar. Cash Accounts receivable Inventories Fixed assets Total assets Sales $ $ Balance Sheet $270,000 Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold $ $ $ 54,000 67,500arrow_forwardi. Use the information available in Income and Financial position statementin Part A and calculate the following ratios for DavidCompetitors Average• Net profit margin 28%• Gross profit margin 65%• Current ratio 2.10x• Acid test ratio 1.50x• Accounts receivable collection period 47 days• Accounts payable payment period 65 days Net Profit Margin = Net Income/ Sales = 350/2300 = 15.22% Gross Profit = Sales Revenue + Ending Inventory - Purchases less purchase returns = 2300 + 250 - 1100 = 1450 Gross Profit Margin = Gross Profit/ Sales = 1450/2300 = 63.04% Current Ratio = Current Assets/ Current Liabilities Current Assets = Cash + Bank + Accounts Receivable + Inventory = 4050 + 17100 + 400 + 250 = 21800 Current Liabilities = Accounts Payable = 700 Current Ratio = 21800/700 = 31.14:1 please answer this QUESTION :ii. Assuming David’s competitor’s ratio averages are as stated above:Analyse his performance with reference to each of the ratios calculatedin comparison to those of her…arrow_forward
- Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.1x Days sales outstanding: 73.0 daysa Inventory turnover ratio: 4.25x Fixed assets turnover: 3.0x Current ratio: 2.0x Gross profit margin on sales: (Sales Cost of goods sold)/Sales aCalculation is based on a 365-day year. = 15% Do not round intermediate calculations. Round your answers to the nearest dollar. Cash Accounts receivable Inventories Fixed assets Balance Sheet Current liabilities Long-term debt Common stock Retained earnings Total assets $300,000 Total liabilities and equity Sales $ Cost of goods sold $ EA $ A 75,000 75,000arrow_forwardProvide answerarrow_forwardTotal assets turnover: 1.1x Days sales outstanding: 36.5 daysa Inventory turnover ratio: 3.75x Fixed assets turnover: 2.5x Current ratio: 2.0x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. 1 Do not round intermediate calculations. Round your answers to the nearest dollar. Balance Sheet Cash Accounts receivable Inventories Fixed assets Total assets Sales $ $ $330,000 Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold $ $ $ 49,500 115,500 Check My Work (2 remainiarrow_forward
- Based on the following data for the current year, what is the accounts receivable turnover? Net sales on account during year $500,000 Cost of merchandise sold during year 300,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Inventory, beginning of year 90,000 Inventory, end of year 110,000 a. 12.5 b. 11.1 c. 10.0 d. 14.3arrow_forwardCc. 207.arrow_forwardSuppose 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)arrow_forward
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