Required information [The following information applies to the questions displayed below] Roth Incorporated experienced the following transactions for year 1, its first year of operations: 1. Issued common stock for $50,000 cash. 2. Purchased $140,000 of merchandise on account 3. Sold merchandise that cost $110,000 for $250,000 on account. 4. Collected $236,000 cash from accounts receivable. 5. Paid $118,000 on accounts payable. 6. Paid $50,000 of salaries expense for the year 7. Paid other operating expenses of $28,000. 8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule. Number of Days Past Due Current 0 to 30 31 to 60 61 to 90 Over 90 days Amount $10,000 Net realizable value 2,000 1,200 500 300 Percent Likely to be Uncollectible 0.01 0.05 0.10. 0.20 0.50 Allowance Balance c. What is the net realizable value of the accounts receivable at December 31, Year 1?

Required information [The following information applies to the questions displayed below] Roth Incorporated experienced the following transactions for year 1, its first year of operations: 1. Issued common stock for $50,000 cash. 2. Purchased $140,000 of merchandise on account 3. Sold merchandise that cost $110,000 for $250,000 on account. 4. Collected $236,000 cash from accounts receivable. 5. Paid $118,000 on accounts payable. 6. Paid $50,000 of salaries expense for the year 7. Paid other operating expenses of $28,000. 8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule. Number of Days Past Due Current 0 to 30 31 to 60 61 to 90 Over 90 days Amount $10,000 Net realizable value 2,000 1,200 500 300 Percent Likely to be Uncollectible 0.01 0.05 0.10. 0.20 0.50 Allowance Balance c. What is the net realizable value of the accounts receivable at December 31, Year 1?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
The general ledger of Hubert Corporation provides the following information: End of Year Beginning of Year Accounts Receivable $ 125,000 $ 94, 000 Inventory 280,000 210,000 Accounts Payable 130,000 65,000 The company's net sales for the year were $2,850,000 and cost of goods sold amounted to $1,650,000. Instructions Calculate the following: a) Cash receipts from customers. b) Cash payments to suppliers.
The companys balance sheet showed an accounts receivble balance of $80,000 at the begininng of the year and $47,000 at the end of the year. The company reported $720,000 in credit sales for the year. What was the amount of cash collected on account receivables durig the year
[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Year Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity Days' Sales In Inventory Current Year: 1 Year Ago: $ 33,204 89,000 Days' sales in inventory 111,000 10,693 324,561 $568,458 $140,131 105,801 162,500 160,026 $568,458 $ 450,787 229,088 12,563 9,607 1 Year Ago 1 1 $ 38,812 62,000 82,000 1 10,188 297,050 $ 490,050 $81,990 111,584 162,500 133,976 $ 490,050 The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: For Year Ended December 31 Current Year 1 Year Ago Sales $ 738,995 Cost of goods sold Other operating expenses Interest expense Income tax expense Total costs and expenses Net income…
[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets $ 33,783 $ 39,888 71,898 89,474 10,785 286,555 $ 39,900 56,491 58,411 4,616 256,082 Cash Accounts receivable, net Merchandise inventory 97,913 125,594 10,989 310,097 Prepaid expenses Plant assets, net Total assets $ 578,376 $ 498,600 $ 415,500 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $ 144,016 $ 54,298 $81,735 113,531 163,500 139,834 109,822 163,500 91,826 163,500 105,876 161,038 Total liabilities and equity $ 578,376 $ 498,600 $ 415,500 For both the current year and one year ago, compute the following ratios: Exercise 17-11 (Algo) Analyzing profitability LO P3 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Year 1 Year Ago Sales $ 751,889 $ 593,334 $ 458,652 Cost of goods sold…
39. CityMarket, Inc.'s purchases during the year were $118,378. The balance sheet shows an average accounts payable balance of $12,000. CityMarket's payables payment period is closest to: 37 days. 44 days. 52 days.
Spooky Company's sales, current assets and current liabilities (all in thousands of pesos) have been reported as follows over the last five years (Year 5 is the most recent year): Year 5 Year 4 Year 3 Year 2 Year 1 Sales.. P5,625 P5,400 P4,950 P4,725 P4,500 Current assets: Cash . Accounts receivable.. Inventory ... P 72 496 P 88 P 80 400 64 P. 84 560 432 416 ..... 896 880 816 864 800 .... Total current assets.. . PL.520 PL.448 P1,332 P1,368 P1.280 Current liabilities.. . P 390 P 318 Р 324 P 330 Р 300 Requirements: 1. Express all of the asset, liability, and sales in trend percentages. (Show percentages for each item.) Use Year 1 as the base year, and carry computations to one decimal place. 2. Comment on the result of your analysis.
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable. 1. Calculate bad debt expense for the year.2. Calculate the year-end balance in the allowance for uncollectible accounts.
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales, calculate (1) bad debt expense for the year and (2) the year-end balance in the allowance for uncollectible accounts.
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $360,000: allowance for uncollectible accounts at the beginning, $30,000, credit sales during the year, $1,800,000; accounts receivable written off during the year $19,200; cash collections from customers; $1,740,000. the company estimates that the required year-end balance in the allowance for uncollectible accounts should be $40,080. What is the year-end gross and net accounts receivable balance?
Financial statement data for the years ended December 31 for Parker Corporation are as follows: Sales Accounts receivable: Beginning of year End of year Current Year Current Year $2,595,600 Current Year 390,000 434,000 a. Determine the accounts receivable turnover for each year. Round your answers to one decimal place. Accounts Receivable Turnover times times Prior Year $2,409,500 400,000 390,000 Prior Year b. Determine the days' sales in receivables for each year. Round your answers to nearest day. Assume 365 days per year. Number of Days' Sales in Receivables days days Prior Year c. Does the change in accounts receivable turnover and days' sales in receivables from the first year to the second year indicate a favorable or unfavorable change?
The following transactions affecting the accounts receivable of FST Inc. took place during the year ended December 31: Sales (Cash & Credit) 5,900,000 Cash received from credit customers, all of whom took advantage of the discount feature of the entity’s credit term 4/10, n/30 3,024,000 Cash received from cash customers 2,100,000 Accounts receivable written off as worthless 50,000 Credit memorandum issued to credit customers for sales return and allowances 250,000 Cash refund given to cash customers for sales return and allowances 20,000 Recoveries on account receivable written off as uncollectible in prior periods (not included in cash amount stated above) 80,000 The following balances were taken from the January 1 Statement of Financial Position: Accounts Receivable 950,000 Allowance for Doubtful account 100,000 The entity provided for uncollectible account losses by crediting allowance for doubtful accounts in the…