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.
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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.To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. issued stock for cash $20,000 B. purchased supplies inventory on account $1,800 C. paid employee salaries; assume it was current days expenses $950 D. paid note payment to bank (principal only) $1,200 E. collected balance on accounts receivable $4,750Financial data for Otto Company follow: a. Compute the ratio of cash to monthly cash expenses. b. Interpret the results computed in (a).
- The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.The accounting staff of Lambert Company has assembled the following information for the year ended December 31 of the current year. Cash sales $ 726,000 Credit sales 2,500,000 Collections on accounts receivable 2,205,000 Cash transferred from the money market fund to the general bank account 250,000 Interest and dividends received 100,000 Purchases (all on account) 1,800,000 Payments on accounts payable to merchandise suppliers 1,530,000 Cash payments for operating expenses (including payroll) 1,065,000 Interest paid 180,000 Income taxes paid 95,000 Loans made to borrowers 500,000 Collections on loans (excluding receipts of interest) 260,000 Cash paid to acquire plant assets 3,100,000 Book value of plant assets sold 651,300 Loss on sales of plant assets 75,200 Proceeds from issuing bonds payable 2,500,000 Dividends paid 120,000 Cash and cash equivalents, Jan. 1 512,000 Required: a. Prepare a statement of cash flows. Use the direct method of reporting cash flows from operating…A company recorded the following transactions: cash sales $10,000, credit sales $20,000, cash received from customers $15,000, and accounts receivable at the beginning of the period $5,000. Calculate the accounts receivable turnover ratio and the average collection period.
- 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: gross accounts receivable balance at the beginning of the year, $350,000; allowance for uncollectible accounts at the beginning of the year, $24,000 (credit balance); credit sales during the year, $1,200,000; accounts receivable written off during the year, $15,000; cash collections from customers, $1,100,000. Assuming the company estimates that future bad debts will equal 12% 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 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…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…For the month of December, the records of Scrooge Corporation show the following information: Cash received on accounts receivable $45,000 Cash sales 30,000 Accounts receivable, December 1 80,000 Accounts receivable, December 31 75,000 Accounts receivable written off 2,000 The corporation uses the direct write-off method in accounting for uncollectible accounts receivable. What are the gross sales for the month of December? a.$72,000 b.$61,000 c.$59,000 d.$60,000