Question
OrangeAid, is a leading worldwide integrated brand owner, bottler, and distributor of nonalcoholic beverages. The following represents selected data from recent financial statements of OrangeAid
OrangeAid, is a leading worldwide integrated brand owner, bottler, and distributor of nonalcoholic beverages. The following represents selected data from recent financial statements of OrangeAid (dollars in millions):
ORANGEAID Consolidated Balance Sheets (partial) | ||||||||||
(in millions) | December 31, 20x3 | December 31, 20x2 | ||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 221 | $ | 74 | ||||||
Accounts receivable (net of allowances of $12 and $19, respectively) | 530 | 545 | ||||||||
Consolidated Statements of Income (partial) | ||||||||
For the Year Ended December 31 | ||||||||
(in millions) | 20x3 | 20x2 | 20x1 | |||||
Net sales | $ | 5,670 | $ | 5,546 | $ | 5,544 | ||
Net income | $ | 1,085 | $ | 828 | $ | 735 | ||
The company also reported bad debt expense of $9 million in 20x3, $15 million in 20x2, and $11 million in 20x1.
Required:
1. Record the companys write-offs of uncollectible accounts for 20x3.
Transaction | General Journal | Debit | Credit |
2. Assuming all sales were on credit, what amount of cash did OrangeAid collect from customers in 20x3?
Cash collections for 20X3 = _______ million
3. Compute the companys net profit margin for the three years presented.
Net Profit Margin | |
20X3 | _____% |
20X2 | _____% |
20X1 | _____% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started