Chapter 3, Problem 12BE

Judon Corp. provides the following information from its annual report. Assume all revenues are credit sales. The cost of revenues can be used as an approximation of the company's purchases for the year. Revenues  $ 546,190 Cost of revenues  $ 340,275 Inventories as of 31 January 2022  $44,064 Inventories as of 31 January 2021  $41,020 Accounts payable as at 31 January 2022  $58,600 Accounts payable as at 31 January 2021  $51,800 Accounts receivable as at 31 January 2022  $7,482 Accounts receivable as at 31 January 2021  $5,434   Compute the following financial ratios for Judon Corp for 2022 1. Account Receivable Turnover Ratio (Times)? 2. Collection Interval (DSO) / Days? 3. Inventory Turnover Ratio (Times) ? 4. Holding Interval (Days) ? 5. Account Payable  Turnover Ratio (Times)? 6.Payment Interval (Days)? 7. Does Judon Corp need short-term financing?

Judon Corp. provides the following information from its annual report. Assume all revenues are credit sales. The cost of revenues can be used as an approximation of the company's purchases for the year. Revenues  $ 546,190 Cost of revenues  $ 340,275 Inventories as of 31 January 2022  $44,064 Inventories as of 31 January 2021  $41,020 Accounts payable as at 31 January 2022  $58,600 Accounts payable as at 31 January 2021  $51,800 Accounts receivable as at 31 January 2022  $7,482 Accounts receivable as at 31 January 2021  $5,434   Compute the following financial ratios for Judon Corp for 2022 1. Account Receivable Turnover Ratio (Times)? 2. Collection Interval (DSO) / Days? 3. Inventory Turnover Ratio (Times) ? 4. Holding Interval (Days) ? 5. Account Payable  Turnover Ratio (Times)? 6.Payment Interval (Days)? 7. Does Judon Corp need short-term financing?  8. Using the information provided, compute the change in operating working captial

Library Company provided the following data: On January 1, the company’s account receivable and accounts payable were P1,200,000 and P1,500,000, respectively. On December 31, account receivable and accounts payable are P1,350,000 and P1,850,000, respectively. During the current year, accounts written off amounted to P100,000. Sales returns totaled P250,000, of which P50,000 was paid to customers. Cash receipts from customers after P500,000 sales discount amounted to P8,000,000. Cash payments to trade creditors totaled P5,000,0000 after purchase discount of P200,000. Purchase returns amounted to P400,000, of which P100,000 was received from supplier. Under accrual, what amount should be reported as gross sales?