Steinkraus Corporation has provided the following data: This YearLast YearAccounts receivable, net$104,000 $115,000 Inventory$195,000 $174,000 Sales on account$886,000 Cost of goods sold$622,000 Required:Compute the accounts receivable turnover for this year.
What will be an ideal response?
Accounts receivable turnover = Sales on account ÷ Average accounts receivable*
= $886,000 ÷ $109,500 = 8.09
*Average accounts receivable = ($104,000 + $115,000) ÷ 2 = $109,500
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A telemarketer calls individuals at home over the phone and asks them the likelihood that they will purchase a timeshare property over the next 12 months. What is this method of data collection called?
What will be an ideal response?
Exhibit 20-4 On January 1, 2016, Average Leasing Company entered into a direct financing lease with a lessee, Lenny Company. The lease agreement calls for five equal annual payments of $75,000 at the beginning of each year with the first payment due on January 1, 2016. The leased property has an estimated residual value of $10,000, which Lenny does not guarantee. The property remains the property
of Average at the end of the lease term. Average desires a 12% rate of return. Present value factors for a 12% interest rate are as follows: Present value of $1 for n = 1 0.892857 Present value of $1 for n = 5 0.567427 Present value of an ordinary annuity for n = 5 3.604776 Present value of an annuity due for n = 5 4.037349 ? Refer to Exhibit 20-4. What is the amount of the credit to Unearned Interest: Leases to be recorded by Average Leasing on January 1, 2016 (round the answer to the nearest dollar)? A) $82,199 B) $66,525 C) $72,199 D) $76,525
The net income for a period and the financial position at the end of the period are
a. interrelated. b. independent. c. relevant. d. irrelevant. e. autonomous.
If the company meets the new target cost number, how much will they have to cut costs per unit, if any?
A) $1 B) $3 C) $2 D) $3