Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Chapter 13, Problem 9E
To determine
(a)
Introduction:
Inventory turnover ratio measures the number of times a company has sold its inventory.
Receivable turnover ratio measures the number of times company collects its
To calculate:
Inventory turnover ratio and receivable turnover ratio.
To determine
(b)
Introduction:
Inventory turnover ratio measures the number of times a company has sold its inventory.
Receivable turnover ratio measures the number of times company collects its accounts receivable.
To calculate:
Average days collection period of account receivables and average days to sell inventory.
To determine
(c)
Introduction:
Inventory turnover ratio measures the number of times a company has sold its inventory.
Receivable turnover ratio measures the number of times a company collects its accounts receivable.
To comment:
On the above results.
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Suppose the 2017 financial statements of 3M Company report net sales of $23.1 billion. Accounts receivable (net) are $3.40 billion at the beginning of the year and $3.54 billion at the end of the year.
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Relic Industries manufactures and markets many products you use every day. In 2019, sales for the company were $93,000 (all
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average gross profit percentage was 51.2 percent. Account balances for the year follow:
Accounts receivable (net)
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Beginning
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6,080
Required:
1. Compute the turnover ratios for accounts receivable and inventory.
2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell
inventory.
Required 1 Required 2
Ending
$ 5,700
6,100
Complete this question by entering your answers in the tabs below.
Receivables Turnover Ratio
Inventory Turnover Ratio
Compute the turnover ratios for accounts receivable and inventory. (Do not round intermediate calculations. Round your final
answers to 1 decimal place.)
Paul & Griffon manufactures and markets many products you use every day. In 2016, sales for the company
were $93,000 (all amounts in millions). The annual report did not report the amount of credit sales, so we
will assume that all sales were on credit. The average gross profit percentage was 51.2 percent. Account
balances for the year follow:
ts
Beginning Ending
Accounts receivable
ЕВook
$5,300
$5,700
(net)
Inventory
6,080
6,100
Hint
Required:
Print
1. Compute the following turnover ratios.
2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and
the average days to sell inventory.
ferences
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the following turnover ratios. (Do not round intermediate calculations. Round your final answers to 1 decimal place.)
Receivables Turnover Ratio
Inventory Turnover Ratio
00
Chapter 13 Solutions
Managerial Accounting
Ch. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - What is ratio analysis? Why is it useful?
Ch. 13 - What benchmarks are commonly used for interpreting...Ch. 13 - Prob. 5QCh. 13 - Why are some analyses called horizontal and others...Ch. 13 - Slow Cellar’s current ratio increased from 1.2 to...Ch. 13 - From last year to this year. Colossal Company’s...Ch. 13 - From last year to this year, Berry Barn reported...Ch. 13 - Prob. 10Q
Ch. 13 - Prob. 1MCCh. 13 - Prob. 2MCCh. 13 - Prob. 3MCCh. 13 - Prob. 4MCCh. 13 - Prob. 5MCCh. 13 - Prob. 6MCCh. 13 - Prob. 7MCCh. 13 - Prob. 8MCCh. 13 - Prob. 9MCCh. 13 - Prob. 1MECh. 13 - Prob. 2MECh. 13 - Prob. 3MECh. 13 - Prob. 4MECh. 13 - Prob. 5MECh. 13 - Prob. 6MECh. 13 - Prob. 7MECh. 13 - Prob. 8MECh. 13 - Prob. 9MECh. 13 - Prob. 10MECh. 13 - Prob. 11MECh. 13 - Prob. 12MECh. 13 - Prob. 13MECh. 13 - Prob. 14MECh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Computing and Interpreting Liquidity Ratios...Ch. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Analyzing the Impact of Selected Transactions on...Ch. 13 - Prob. 15ECh. 13 - Prob. 1.1GAPCh. 13 - Prob. 1.2GAPCh. 13 - Prob. 2.1GAPCh. 13 - Prob. 2.2GAPCh. 13 - Prob. 2.3GAPCh. 13 - Prob. 2.4GAPCh. 13 - Prob. 2.5GAPCh. 13 - Prob. 2.6GAPCh. 13 - Prob. 2.7GAPCh. 13 - Prob. 2.8GAPCh. 13 - Prob. 3.1GAPCh. 13 - Prob. 3.2GAPCh. 13 - Prob. 3.3GAPCh. 13 - Prob. 4.1GAPCh. 13 - Prob. 4.2GAPCh. 13 - Prob. 4.3GAPCh. 13 - Prob. 5.1GAPCh. 13 - Prob. 5.2GAPCh. 13 - Prob. 5.3GAPCh. 13 - Prob. 5.4GAPCh. 13 - Prob. 6.1GAPCh. 13 - Prob. 6.2GAPCh. 13 - Prob. 7GAPCh. 13 - Prob. 1.1GBPCh. 13 - Prob. 1.2GBPCh. 13 - Prob. 2.1GBPCh. 13 - Prob. 2.2GBPCh. 13 - Prob. 2.3GBPCh. 13 - Prob. 2.4GBPCh. 13 - Prob. 2.5GBPCh. 13 - Prob. 2.6GBPCh. 13 - Prob. 2.7GBPCh. 13 - Prob. 2.8GBPCh. 13 - Prob. 3.1GBPCh. 13 - Prob. 3.2GBPCh. 13 - Prob. 3.3GBPCh. 13 - Prob. 4.1GBPCh. 13 - Prob. 4.2GBPCh. 13 - Prob. 4.3GBPCh. 13 - Prob. 5.1GBPCh. 13 - Prob. 5.2GBPCh. 13 - Prob. 5.3GBPCh. 13 - Prob. 5.4GBPCh. 13 - Prob. 6.1GBPCh. 13 - Prob. 6.2GBPCh. 13 - Prob. 7GBP
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