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The allowance for uncollectible accounts was $10 and $7 at December 31, 2021 and 2020, respectively. All sales are on credit. Inventories Inventories are
The allowance for uncollectible accounts was $10 and $7 at December 31, 2021 and 2020, respectively. All sales are on credit. Inventories Inventories are valued at the lower of cost or market. The cost of the majority of Inventories is measured using the last-in, first-out (LIFO) method. Other Inventories are measured principally at average cost and consist mostly of foreign Inventories and certain raw materials. If the entire Inventory had been valued on an average cost basis, Inventory would have been higher by $480 and $350 at the end of 2021 and 2020, respectively. During 2021, 2020, and 2019, liquidation of LIFO layers generated Income of $6, $7, and $25, respectively. Required: 1. Determine the amount of accounts receivable Inverness wrote off during 2021. (Enter your answer in millions.) 2. Calculate the amount of cash collected from customers during 2021. (Enter your answer in millions.) 3. Calculate what cost of goods sold would have been for 2021 if the company had used average cost to value its entire Inventory. (Enter your answer in millions.) 4. Calculate the receivables turnover ratio, the Inventory turnover ratio, and the gross profit ratio for 2021. (Round "Receivables turnover ratio" and "Inventory turnover ratio" answers to 2 decimal places. Round "Gross profit ratio" answer to nearest percent (l.e., 0.123 needs to be entered as 12%).) 1. Accounts receivable written off 2. Cash collections 3. Cost of goods sold 4a. Receivables turnover ratio 4b. Inventory turnover ratio 4c. Gross profit ratio million million million times times %
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