Double West Suppliers (DWS) reported sales for the year of $280,000, all on credit. The average...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Double West Suppliers (DWS) reported sales for the year of $280,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances follow. Beginning $ 43,000 58,000 Ending $ 53,000 38,000 Accounts receivable (net) Inventory Required: 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. Double West Suppliers (DWS) reported sales for the year of $280,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances follow. Beginning $ 43,000 58,000 Ending $ 53,000 38,000 Accounts receivable (net) Inventory Required: 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.
Expert Answer:
Answer rating: 100% (QA)
Sales 280000 Less Gross Profit 112000 28000040 Cost of goods sold 168000 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
Students also viewed these accounting questions
-
Double West Suppliers (DWS) reported sales for the year of $300,000, all on credit. The average gross profit percentage was 40 percent on sales. Account balances follow: Required: 1. Compute the...
-
Contrast the methodologies behind deadlock prevention and deadlock avoidance. How do their differing approaches to resource allocation affect system throughput and resource utilization? Provide...
-
You have been told that you need $15,000 today for every $50,000 you want when you retire 30 years from now. What rate of interest was used in the present value computation? Assume interest is...
-
On 1 June 2019, Manchester United Ltd bought 48 million ordinary shares in Chelsea FC Ltd paying GHS 280 million cash. The summarised statement of financial position for the two entities as at 31...
-
Data for Olaf Corp. and DeVito Ltd. are presented in E5-4 and E5-5. In E5-4 and E5-5 Olaf Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: Apr....
-
Jamison and Blue form a partnership with capital contributions of \($600,000\) and \($800,000,\) respectively. Their partnership agreement calls for Jamison to receive \($120,000\) per year in...
-
Hermione decided to purchase a new automobile. Being concerned about environmental issues, she is leaning toward the hybrid rather than the gasoline only model. Nevertheless, as a new business school...
-
Craig Ferguson, an internal auditor for HHG Online Booksellers, had been investigating a case of embezzlement fraud for nearly two months. After searching personnel and company records, visiting with...
-
Microsoft's stock price peaked at 6118% of its IPO price more than 13 years after the IPOT Suppose that $25,000 invested in Microsoft at its IPO price had been worth $1,500,000 (6000% of the IP...
-
John Chang operates a plumbing business as a proprietorship (John Chang Plumbing). The following events took place during the month of June 2022: Required Identify the accounting assumption,...
-
What alternate options that you as a mortgage broker suggest to a client in the event that the loan was rejected by the lender you initially proposed due to a credit report?
-
Last year, Lauren grossed $ 175,000 as a stockbroker on Wall Street. a. Determine how much he owes in federal taxes when he files on this year. (You should base this on last year's federal tax...
-
The Acme Bank and Storm Dood Company (good old "AB&SDC") is trying to determine what rate of interest they should pay on the new 6-month CDs they are trying to get customers to buy.Looking at the WSJ...
-
Provide an in depth look at Ford Motor Company's (F) financial health. How has the company been trending over the past five years? What are some of the main concerns you would have as an...
-
Beam Inc. bonds are trading today for a price of $ 1172.04. The bond pays annual coupons with a coupon rate of 9.5 % and the next coupon is due in one year. The bond has a yield to maturity of 7.86%....
-
I need some help with this question. With this information summarize in one paragraph comparing the output and try to determine the CPU's capabilities. In particular, can it run 64-bit applications,...
-
Problem 15 - 8 (IAA) Aries Company kept all cash in a checking account. An examination of the accounting records and bank statement for the month of June revealed the following information: . A cash...
-
Write an SQL statement to display all data on products having a QuantityOnHand greater than 0.
-
Quantum Dots, Inc., is a nanotechnology company that manufactures quantum dots, which are tiny pieces of silicon consisting of 100 or more molecules. Quantum dots can be used to illuminate very small...
-
Indicate whether each of the following companies is likely to use job order (J) or process costing (P). _____ 1. Golf ball manufacturer. _____ 2. Landscaping business. _____ 3. Tile manufacturer....
-
Indicate whether each item would be added (+) or subtracted (-) in the computation of cash flow from operating activities using the indirect method. Indicate whether each item would be added (+) or...
-
Martinez Toys has examined the market for toy train locomotives. It believes there is a market niche in which it can sell locomotives at \($80\) apiece. It estimates that 10,000 of these loco-...
-
The April 21, 1997, issue of Forbes includes an article by Toni Mack entitled "The Tiger Is on the Prowl Instructions Read the article and answer the following questions. (a) What have been the...
-
Waterville Corporation produces a filter that has a per unit cost of \($15\). The company would like a 30% markup percentage. Using cost-plus pricing, determine the per unit selling price.
Study smarter with the SolutionInn App