now here,it is assumed that sale 50% sales come from catering business
Cathys Cuisine Ltd. is a small restaurant and catering business started three years ago by Cathy Crosby. Initially the companys operations consisted of a small diner. In 2019, the company added the catering services as a way to expand sales without having to add space for seats. As the catering side of the business grew in 2020, the company purchased a used vehicle for deliveries. All sales in the diner are cash, debit, or credit card, but for catering jobs, customers are invoiced after the event. Most of the companys suppliers offer terms of 30 days. Selected financial information for Cathys Cuisine Ltd. follows.
(Liquidity and profitability analysis) Cathy net small restaurant and cate business started three years by Catey byly the competences 2015, the Services as a way to expand sales without having to a space for seats. As the catering made of the green 7000, the compared we hace for New debit, or credit card, but for catering jobs, customers are invoice ter the event. Most of the company's eps offer forms of days. Sested and women Cali . As $9.200 14,660 9,60 15.150 30,460 $79.430 53,310 10,220 6,050 15,150 23,770 Accounts robe Inventory Land Building and equipment Tools Liabilities and equity Accounts payable Short-term note yale Mortgage payable current Mortgage payable Share capital Retained earnings Toallabies and equity Other information Sales Cast of goods sold come $9,170 1.620 2.720 24.450 12.000 29.440 $79,430 $8.00 0 2.720 27,200 12.000 7,210 156,500 $193,650 $152,190 73,850 68,940 21.530 5.550 200020205A Calculate the company's accounts receivable turnover ratio for 2020. How quickly is the company collecting its receivables (Round answers to I decimal places. 18 Accounts receivable turnover 15.5 mes 23.3 Average collection period days SHOW SOLUTION HOW ANSWER LINK TO TEXT By accessing this Question Anstance, you will learn while you earn points bed on the Point Potential Policy it by your instructor Attempts 4 of 4 used (d) Assume that 50% of the sales come from the catering business and recalculate the accounts receivable turnover for 2020. (Round answers to decimal place, 1.4) 2020 Accounts receivable-catering turnover times Average collection period days s Cathy's Cuisine Ltd. is a small restaurant and catering business star services as a way to expand sales without having to add space for s debit, or credit card, but for catering jobs, customers are invoiced af 2020 2019 $9,200 14,660 9,960 15,150 30,460 $79,430 $3,310 10,220 6,050 15,150 23,770 $58,500 Assets Cash Accounts receivable Inventory Land Building and equipment Total assets Liabilities and equity Accounts payable Short-term note payable Mortgage payable current Mortgage payable Share capital Retained earnings Total liabilities and equity Other information Sales Cost of goods sold Net income $9,170 1,620 2,720 24,480 12,000 29,440 $79,430 $8,670 0 2,720 27,200 12,000 7,910 $58,500 $193,650 73,860 21,530 $152,190 68,940 5,530 Attempts al 4 (di) Assume that 50% of the sales come from the catering business and recalculate the accounts receivable turnover for 2020. (Round answers to I decimal acus. 14.) 2020 Accounts receivable - catering turnover times Average collection period days LINK TO TEXT
