Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sales for the year were $72,000 and cost of goods sold were $57,600. The balance sheet at the end of the year is given below:

image text in transcribed
image text in transcribed
Sales for the year were $72,000 and cost of goods sold were $57,600. The balance sheet at the end of the year is given below: Assets Cash Accounts receivable Inventory Current assets Machines Real estate Net fixed assets Total assets Liabilities and Equity 11,000 Accounts payable 19,000 7,000 Current liabilities 19,000 44,000 Long-term debt 95,000 62,000 Total liabilities 114,000 34,000 Paid-in capital 20,000 80,000 Retained earnings 42,000 114,000 Equity 62,000 176,000 Total liab. & equity 176,000 B Attempt 1/6 for 10 pts. Part 1 What is the firm's days' sales in inventory? 0+ decimals Submit Attempt 1/6 for 10 pts. Part 2 What is its average collection period? 1+ decimals esc RO IB Attempt 1/6 for 10 pts. Part 3 What is its average payment period? 0+ decimals Submit

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_2

Step: 3

blur-text-image_3

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

The Volatility Surface A Practitioner's Guide

Authors: Jim Gatheral

1st Edition

0471792519, 978-0471792512

More Books

Students also viewed these Finance questions