Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

B. Jones Corporation has issued common stock only. The company has been successful and has a gross profit rate of 20%. The information shown below

B. Jones Corporation has issued common stock only. The company has been successful and has a gross profit rate of 20%. The information shown below was taken from the company's financial statements.
Beginning inventory $ 482,000
Purchases 4,346,000
Ending inventory ?
Average accounts receivable 700,000
Average common stockholders' equity 3,100,000
Sales revenue (all on credit) 5,600,000
Net income 341,000
Compute the following:
image text in transcribed
image text in transcribed
image text in transcribed
Accounts receivable turnover and the average number of days required to collect the accounts receivable.
Accounts receivable turnover (Round to 0 decimal places, e.g. 25)

image text in transcribed

times
Average collection period (Round to 1 decimal place, e.g. 25.2)

image text in transcribed

days
image text in transcribed
image text in transcribed
image text in transcribed
The ending inventory, inventory turnover and the average days in inventory.
Ending Inventory $

image text in transcribed

Inventory turnover (Round to 1 decimal place, e.g. 25.2)

image text in transcribed

times
Average days in inventory (Round to 1 decimal place, e.g. 25.2)

image text in transcribed

days
image text in transcribed
image text in transcribed
image text in transcribed
Return on common stockholders' equity. (Round to 0 decimal places, e.g. 25%)
Return on common stockholders' equity

image text in transcribed

%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions