Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mei - kwei International s common stock sold for $ 4 . 3 0 per share at the end of this year. The company paid

Mei-kwei Internationals common stock sold for $4.30 per share at the end of this year. The company paid preferred stock dividends totalling $4,400 and a common stock dividend of $0.81 per share this year. It also provided the following data excerpts from this years financial statements:
Ending
Balance Beginning Balance
Cash $ 41,000 $ 36,200
Accounts receivable $ 74,000 $ 58,700
Inventory $ 64,900 $ 74,000
Current assets $ 179,900 $ 168,900
Total assets $ 590,000 $ 624,000
Current liabilities $ 70,500 $ 63,000
Total liabilities $ 160,000 $ 144,000
Preferred stock $ 45,000 $ 45,000
Common stock, $1 par value $ 94,000 $ 94,000
Total stockholders equity $ 430,000 $ 480,000
Total liabilities and stockholders equity
$
590,000 $ 624,000
This Year
Sales (all on account) $ 865,000
Cost of goods sold $ 501,700
Gross margin $ 363,300
Net operating income $ 206,250
Interest expense $ 11,000
Net income $ 96,000
Required:
What is the average collection period? (Use 365 days a year. Round your intermediate calculations and final answer to 2 decimal places.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Audit Effectiveness Meeting The IT Challenge

Authors: Kamil Omoteso

1st Edition

1409434680, 9781409434689

More Books

Students also viewed these Accounting questions