Adams Furniture has a quick ratio of 2.00x, $37,575 in cash, $20,875 in accounts receivable, some inventory, total current assets of$83,500, and total current liabilities of $29,225. The company reported annual sales of $100,000 in the most recent annual report.Over the past year, how often did Adams Furniture sell and replace its inventory?O 2.86xO 4.39xO 8.01xO 3.99xThe inventory turnover ratio across companies in the furniture industry is 4.389x. Based on this information, which of the following statements istrue for Adams Furniture?O Adams Furniture is holding less inventory per dollar of sales compared with the industry average.O Adams Furniture is holding more inventory per dollar of sales compared with the industry average.You are analyzing two companies that manufacture electronic toys-Like Games Inc. and Our Play Inc. Like Games was launched eight years ago,whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal marketshare with sales of $100,000 each. You've collected company data to compare Like Games and Our Play. Last year, the average sales for all industrycompetitors was $255,000. As an analyst, you want to make comments on the expected performance of these two companies in the coming year.You've collected data from the companies' financial statements. This information is listed as follows: (Note: Assume there are 365 days in a year.) You are analyzing two companies that manufacture electronic toys-Like Games Inc. and Our Play Inc. Like Games was launched eight years ago,whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal marketshare with sales of $100,000 each. You've collected company data to compare Like Games and Our Play. Last year, the average sales for all industrycompetitors was $255,000. As an analyst, you want to make comments on the expected performance of these two companies in the coming year.You've collected data from the companies' financial statements. This information is listed as follows: (Note: Assume there are 365 days in a year.)Accounts receivableNet fixed assetsTotal assetsData Collected (in dollars)Like Games Our Play Industry Average3,9003,85080,000216,750125,000234,6002,70055,00095,000Using this information, complete the following statements to include in your analysis.1. A days of sales outstanding represents an efficient credit and collection policy. Between the two companies,cash from its customers faster than2. Our Play's fixed assets turnover ratio isacquisition cost of its fixed assets isis collecting,but both companies are collecting their receivables less quickly than the industry average.than that of Like Games. This could be because Our Play is a relatively new company, so thethan the recorded cost of Like Games's net fixed assets.which is3. Like Games's total assets turnover ratio ishigher total assets turnover ratio indicates greater efficiency.than the industry's average total assets turnover ratio. In general, a

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Adams Furniture has a quick ratio of 2.00x, $37,575 in cash, $20,875 in accounts receivable, some inventory, total current assets of $83,500, and total current liabilities of $29,225. The company reported annual sales of $100,000 in the most recent annual report. ver the past year, how often did Adams Furniture sell and replace its inventory? O 2.86x O 4.39x O 8.01x Q3.99x

Adams Furniture has a quick ratio of 2.00x, $37,575 in cash, $20,875 in accounts receivable, some inventory, total current assets of $83,500, and total current liabilities of $29,225. The company reported annual sales of $100,000 in the most recent annual report. ver the past year, how often did Adams Furniture sell and replace its inventory? O 2.86x O 4.39x O 8.01x Q3.99x

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Polk Software Inc. has a quick ratio of 2.00x, $32,850 in cash, $18,250 in accounts receivable, some inventory, total current assets of $73,000, and total current liabilities of $25,550. The company reported annual sales of $100,000 in the most recent annual report. Over the past year, how often did Polk Software Inc. sell and replace its inventory? 4.57x O 4.97x O 5.23x 3.69x
Crawford Construction has a quick ratio of 2.00x, $32,175 in cash, $17,875 in accounts receivable, some inventory, total current assets of $71,500, and total current liabilities of $25,025. The company reported annual sales of $300,000 in the most recent annual report. Over the past year, how often did Crawford Construction sell and replace its inventory? 8.01x O 15.39x 13.99x O2.86x
Crockett Electronics has a quick ratio of 2.00x, $30,150 in cash, $16,750 in accounts receivable, some inventory, total current assets of $67,000, and total current liabilities of $23,450. The company reported annual sales of $300,000 in the most recent annual report. Over the past year, how often did Crockett Electronics sell and replace its inventory? 08.01x O 16.42x O 2.86x O 14.93x
Crockett Electronics has a quick ratio of 2.00x, $30,150 in cash, $16,750 in accounts receivable, some inventory, total current assets of $67,000, and total current liabilities of $23,450. The company reported annual sales of $300,000 in the most recent annual report. A) Over the past year, how often did Crockett Electronics sell and replace its inventory? 2.86x 16.42x 8.01x 14.93x B) The inventory turnover ratio across companies in the electronics industry is 12.6905x. Based on this information, which of the following statements is true for Crockett Electronics? Crockett Electronics is holding less inventory per dollar of sales compared with the industry average. Crockett Electronics is holding more inventory per dollar of sales compared with the industry average. You are analyzing two companies that manufacture electronic toys—Like Games Inc. and Our Play Inc. Like Games was launched eight years ago, whereas Our Play is a…
For its most reoent year a company had Sales (all on credit) of $a50,000 and Cost of Goods Sold of $510,000. Al the beginning of the year, its Accounts Receivable were $100,000 and its Inventory was $120,000. At the end of the year, its Accounts Receivable were $80,000 and its Inventory was $100,000. Inventory turnover ratio (Answer format: 12.34) * Your answer Accounts receivable turnover ratio (Answer format: 12.34) * Your answer On average how many days of sales were in Accounts Receivable during the year? (Answer format: 12.3) * Your answer On average how many days of sales were in Inventory during the year? (Answer format: 12.3) *
Adams Furniture has a quick ratio of 2.00x, $37,575 in cash, $20,875 in accounts receivable, some inventory, total current assets of $83,500, and total current liabilities of $29,225. The company reported annual sales of $100,000 in the most recent annual report. Additionally, the company’s cost of goods sold is 75% of sales. Over the past year, how often did Adams Furniture sell and replace its inventory? 8.01x 3.29x 2.86x 2.99x
Yasmeen Corporation's inventory balance was $22,000 at the beginning of the year and $20,000 at the end. The inventory turnover ratio for the year was 6.0 and the gross profit was 40% of net sales. What were net sales for the year? A. $126,000. C. $315,000. D. $210,000.
5. The average inventory of Wallpaper Outlet is $21,700. Their annual sales for last were $106,210. Pres- ently, the accounts receivable are $8,425. Find (A) last year's inventory turnover to the nearest tenth and (B) the present average collection turnover to the nearest whole day. year 6. The average inventory of Y-mart is $1,350,000. The total annual sales for the last two years were $14,500,000 and $12,200,000 for the previous year. Find the inven- tory turnover to the nearest tenth for both years. 7. Byers Book Mart has an inventory turnover of 5.8. Their average inventory is $31,250. Find their annual sales.
7. Sales for the year amount to P3,000,000, Accounts receivable is P360,000. What is the average collection period assuming annual data is used? quarterly data is used? 8. Beginning inventory is P40,000, ending inventory is P28,000. Cost of goods sold is double the ending inventory and accounts payable is P44,000,. What is the accounts payable turnover? 9. The quick ratio is 1.75 while the current ratio is 2.5. the current liabilities amount to P525,000. Cost of goods sold is P955,000. What is the inventory turnover? of inventory? what is the average age 10. Ending inventory is P33,000 while accounts payable is P5,000. Purchases were half the ending inventory. What is the accounts payable turnover? inventory? What is the average age of