ex 10/11
Ultra Day Spa provided $94,400 of services during Year 1 . All customers paid for the services with credit cards. Ultra submitted the credit card receipts to the credit card company immediately. The credit card company paid Uitra cash in the amount of face value less a 4 percent service charge. Required a. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model in the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA) Leave blank to indicate that an element is not affected by the event. b. Based on this information alone, answer the following questions: (1) What is the amount of total assets at the end of the accounting period? (2) What is the amount of revenue reported on the income statement? (3) What is the amount of cash flow from operating activities reported on the statement of cash flows? Complete this question by entering your answers in the tabs below. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model. indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Leave blank to indicate that ar (Enter any decreases to account balances and cash outflows with a minus sign. Round your answers to nearest whole dollar.) Based on this information alone, answer the following questions: (1) What is the amount of total assets at the end of the accounting period? (2) What is the amount of revenue reported on the income statement? (3) What is the amount of cash flow from operating activities reported on the statement of cash flows? (Round your answers to nearest whole dollar.) The following information is available for Market, Incorporated and Supply, Incorporated at December 31. Required a. What is the accounts receivable turnover for each of the companies? b. What is the average days to collect the receivables? c. Assuming both companies use the percent of recelvables allowance method, what is the estimated percentage of uncollectible accounts for each company? Complete this question by entering your answers in the tabs below. What is the accounts recelvable turnover for each of the companies? (Round your answers to 1 decimal place.) What is the accounts receivable turnover for each of the companies? (Roun Complete this question by entering your answers in the tabs below What is the average days to collect the receivables? (Use 365 days in a year. your answers to the nearest whole number.) Complete this question by entering your answers in the tabs below. Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company? (Round your percentage answers to nearest whole number.)
