Exercise 5-18A Calculate receivables ratios (LO5-8) Below are amounts (in millions) from three companies' annual reports....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Exercise 5-18A Calculate receivables ratios (LO5-8) Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable Ending Accounts Receivable $2,712 6,444 615 WalCo TarMart CostGet WalCo TarMart CostGet Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round Intermediate calculations. Enter your answers in millions. Round your "Average accounts receivable" and "Receivables turnover ratio" answers to one decimal place.) WalCo TarMart CostGet $1,765 5,916 579 Net Sales $317,427 62,878 63,963 WalCo TarMart CostGet Receivables Turnover Ratio Average Collection Period 2. Which company appears most efficient in collecting cash from sales? || 11 Receivables turnover ratio times times times Average collection period days days days Exercise 5-18A Calculate receivables ratios (LO5-8) Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable Ending Accounts Receivable $2,712 6,444 615 WalCo TarMart CostGet WalCo TarMart CostGet Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round Intermediate calculations. Enter your answers in millions. Round your "Average accounts receivable" and "Receivables turnover ratio" answers to one decimal place.) WalCo TarMart CostGet $1,765 5,916 579 Net Sales $317,427 62,878 63,963 WalCo TarMart CostGet Receivables Turnover Ratio Average Collection Period 2. Which company appears most efficient in collecting cash from sales? || 11 Receivables turnover ratio times times times Average collection period days days days
Expert Answer:
Answer rating: 100% (QA)
Solution Net Credit Sales Walco 31742700 TarMart 6287800 CostGet ... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Posted Date:
Students also viewed these accounting questions
-
Determine productivity ratios including receivables turnover and average collection period in year2. 2012 Income Statement ($Million) Net sales Less: Cost of goods sold Less: Depreciation Earnings...
-
Calculate the receivables turnover, inventory turnover, and average collection period for a firm, given the following accounting data: accounts receivable are $500,000; accounts payable are $305,000;...
-
The receivables turnover and collection period for Corus Entertainment Inc. were calculated in this chapter, based on the company's financial statements for the 2014 fiscal year. These financial...
-
What, if any, product or product line modifications will Outback have to make in the country you chose in order to be successful? Are any changes necessary in the design of the restaurants? Explain...
-
Deciding which side of the road to drive on is a kind of coordination game. In some countries, people drive on the right side of the road, and in other countries (notably the United Kingdom and some...
-
Burgess Business School has two degree programs, BBA and MBA. The school uses an ABC system to cost the three support services it provides to students from both programs: Career Center, Events, and...
-
What are the three major phases of a fraud? How can an accountant find fraud in each phase?
-
1. Consider Figure Between points c and d, the opportunity cost of ___ tons of wheat is _______ tons of steel. 2. Arrow up or down: An increase in the wage for high-school graduates ______ the...
-
Homework P2-2A, P2-3A, P2-7A Question 3 of 3 < "> View Policies Current Attempt in Progress Selected financial data of two competitors, Target and Wal-Mart, are presented here. (All dollars...
-
Two slender rods of negligible weight are pin-connected at C and attached to blocks A and B, each of weight W. Knowing that P = 1.260W and that the coefficient of static friction between the blocks...
-
hi, I just need the answer for that assignment. I shall be very thank ful to you, if you can help me Forum Description Ron Abrams, VP Operations for Wilson Bros. has come wandering into your office...
-
a company's ordering cost is $25 and the holding cost is 10% of average inventory. given that the total cost is $750, find the demand
-
Given a two-year, 8% annual coupon bond with a face value of Rs. 1,000 and with annual coupon payments that is fully taxable and selling at par, and an identical bond that is tax free, what would the...
-
What is Accounting Equation and explain why the accounting equation will always work? Also, provide an example with your explanation.
-
PAMELA Manufacturing Company uses a job order cost system. The following debits (credits) appeared in Work in Process for the month of August: August 1 Charges during August: Direct materials Direct...
-
Describe the specific safety precautions to be taken whilst carrying out the assembly of trim components to the vehicle (including any specific legislation, regulations or codes of practice relating...
-
How to deal with the problem of "hidden costs" in accounting with respect to my personal finances and trying to complete my degree at Dallas College? ("Hidden costs" are costs that are not stated in...
-
Nitrogen monoxide reacts with hydrogen as follows: 2NO(g)+ H2(g) N2O(g) + H2O(g) The rate law is [H2]/ t = k[NO]2[H2], where k is 1.10 107 L2/(mol2s) at 826oC. A vessel contains NO and H2 at...
-
Bisor Company has a December 31 year end and uses straight-line depreciation for all property, plant, and equipment. On July 1, 2015, the company purchased equipment for $500,000. The equipment had...
-
Norlandia Saga Company's general ledger included the following selected accounts (in thousands) at November 30, 2017: Accounts payable.........................................................$ 546.2...
-
Presented below is an aging schedule for Bravo Wholesale Food Company on December 31, 2017. Bravo sells all its goods on account with terms n/7. At December 31, 2017, the unadjusted balance in...
-
Another population model is one in which species compete for resources, such as a limited food supply. Such a model is given by \[\begin{aligned} & x^{\prime}=a x-b x^{2}-c x y \\ & y^{\prime}=d y-e...
-
Consider the period of a nonlinear pendulum. Let the length be \(L=1.0\) \(\mathrm{m}\) and \(g=9.8 \mathrm{~m} / \mathrm{s}^{2}\). Sketch \(T\) versus the initial angle \(\theta_{0}\), and compare...
-
Derive the first integral of the Lotka-Volterra system, \(a \ln y+d \ln x-\) \(c x-b y=C\).
Study smarter with the SolutionInn App