Question
1- Edgewood Home Improvement Store reported the following selected items at June 30, 2019 (previous year - 2018 - amounts are also given as needed):
1- Edgewood Home Improvement Store reported the following selected items at June 30, 2019 (previous year - 2018 - amounts are also given as needed):
Cash $ 80,000
Accounts Receivable, net:
June 30, 2019 125,00
June 30, 2018 153,000
Accounts Payable 45,000
Cost of Goods Sold 475,000
Merchandise Inventory
June 30, 2019 320,000
June 30, 2018 280,000
Net Credit Sales Revenue 1,200,000
Long-Term Assets 520,000
Long-Term Liabilities 140,000
Other Current Assets 150,000
Other Current Liabilities 130,000
Short-term Investments 200,000
Compute Edgewood's days' sales in receivables for the year ending June 30, 2019. Show your computations.
2- Modern Clothing Store reported the following selected items at June 30, 2019 (previous year - 2018 - amounts are also given as needed):
Cash $80,000
Accounts Receivable, net:
June 30, 2019 45,000
June 30, 2018 53,000
Accounts Payable 55,000
Cost of Goods Sold 288,000
Merchandise Inventory
June 30, 2019 70,000
June 30, 2018 90,000
Net Credit Sales Revenue 480,000
Long-Term Assets 220,000
Long-Term Liabilities 140,000
Other Current Assets 150,000
Other Current Liabilities 130,000
Short-term Investments 40,000
Compute Modern's accounts receivable turnover ratio for the year ending June 30, 2019. Show your computations. (Round the answer to 2 decimal places.)
3) Mansfield Office Furniture Store reported the following selected items at December 31, 2019 (previous year - 2018 - amounts are also given as needed):
Cash $ 50,000
Accounts Receivable, net:
Dec. 31, 2019 75,000
Dec. 31, 2018 63,000
Accounts Payable 55,000
Cost of Goods Sold 375,000
Merchandise Inventory
Dec. 31, 2019 240,000
Dec. 31, 2018 220,000
Net Credit Sales Revenue 820,000
Long-Term Assets 320,000
Long-Term Liabilities 240,000
Other Current Assets 135,000
Other Current Liabilities 125,000
Short-term Investments 80,000
Compute Mansfield's (a) acid-test ratio; (b) accounts receivable turnover ratio (round to 2 decimal places); and (c) days' sales in receivables for 2019 (round to the nearest day). Show your computations.
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Accounting Best Practices
Authors: Steven M Bragg
7th Edition
1118404149, 9781118404140
