Data on Shicksal Inc. for 2021 are shown below, along with the days sales outstanding of the firms against which It benchmarks. The firm's new CFO belleves that the company could reduce Its receivables enough to reduce Its DSO to the benchmarks' average. Use a 365-day year. (computations can be rounded to two decimal places, final answer rounded to nearest peso) Sales P110000
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Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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- For the year ended December 31, 2022, Settles Incorporated earned an ROI of 10.5%. Sales for the year were $9 million, and average asset turnover was 2.1. Average stockholders' equity was $2.8 million. Required: Calculate Settles Incorporated's margin and net income. Note: Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000. Calculate Settles Incorporated's return on equity. Note: Round your answer to 1 decimal place.For the year ended December 31, 2019, Settles Inc. earned an ROI of 9.6%. Sales for the year were $16 million, and average asset turnover was 2.4. Average stockholders' equity was $3.2 million.Required: Calculate Settles Inc.'s margin and net income. (Round "Margin" answer to 1 decimal place. Enter the net income answer in dollars, i.e., $5 million should be entered as 5,000,000.) Calculate Settles Inc.'s return on equity. (Round your answer to 1 decimal place.)Suppose that Dunn Industries has annual sales of $2.3 million, cost of goods sold of $1,650,000, average inventories of $1,116,000, and average accounts receivable of $750,000. Assume that all of Dunn’s sales are on credit.What will be the firm’s operating cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
- Calculate the following ratios for 2021 using working Excel formulas. Make sure to label each appropriately using the following cell (number of days, number of times, etc.) Round each answer to 2 decimal places (example: ROE of .1678 should display as 16.78%): Current Ratio Quick Ratio Debt to Equity Ratio Equity Multiplier Times Interest Earned Dividend Yield Inventory Turnover Days’ Sales in Inventory Receivables Turnover Days’ Sales in Receivables Total Asset Turnover Profit Margin Return on Assets Return on Equity P/E Ratio 2.Calculate Return on Equity (ROE) for 2021 using the DupontWhat is the statement of comprehensive income for the year Dec. 2020 showing the ratio of each item to sales expressed as a percentage (vertical analysis)? Additional information: • There are only 300 business days during the year. The annual amortization of long term notes is 250,000.Firm B has accounts receivable of $5,000,000 and annual sales of $9,000,000. What is the firm's days sales outstanding (DSO)? Assume a 365-day year.
- At year-end 2018, total assets for Arrington Inc. were$1.8 million and accounts payable were $450,000. Sales, which in 2018 were $3.0 million,are expected to increase by 25% in 2019. Total assets and accounts payable are proportionalto sales, and that relationship will be maintained; that is, they will grow at the same rate assales. Arrington typically uses no current liabilities other than accounts payable. Commonstock amounted to $500,000 in 2018, and retained earnings were $475,000. Arrington plansto sell new common stock in the amount of $130,000. The firm’s profit margin on sales is5%; 35% of earnings will be retained.a. What were Arrington’s total liabilities in 2018?b. How much new long-term debt financing will be needed in 2019?(Hint: AFN - New stock = New long-term debt.)Swiss Group reports net income of $40,000 for 2019. At the beginning of 2019, Swiss Group had $200,000 in assets. By the end of 2019, assets had grown to $300,000. What is Swiss Group’s 2019 return on assets? How would you assess its performance if competitors average an 11% return on assets? The initial analysis should include the following: The ratio equation The calculation of the ratio using the equation and the pre-assigned Quick Study or Exercise from the textbook. (See below) Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income. Then explain whether this is a good result or a result that needs improving. Use citations to cite any outside sources used. The original post should include at least three (3) sentences but no more than seven (7) sentences.A firm’s Balance Sheet and Income Statement for FY 2021 is displayed below and in the in the attached excel file. Answer the following questions. NOTE: For this question, use the end-of-the year approach (and not the mid-year convention). For example, this means that days receivables = end of FY receivables/daily sales; similarly for the remaining relevant ratios. BALANCE SHEET 2021 Cash and cash equivalents 280 Receivables 2588 Inventory 2516 Other 189 TOTAL CA 5573 Fixed assets 5024 TOTAL ASSETS 10597 Accounts payable 4713 Short term debt 78 TOTAL CL 4790 LT debt 921 Shareh. Equity 4886 TOTAL LIAB. AND SHARH. EQUITY 10597 INCOME STATEMENT 2021 Sales 19418 COGS 13136 Depreciation 354 SG&A 4952 EBIT 976 Interest Expenses 52 Tax 268 Net income 656 Determine the managerial balance sheet for the FY 2021.
- During 2024, its first year of operations, Hollis Industries recorded sales of $11,800,000 and experienced returns of $750,000. Cost of goods sold totaled $8,850,000 (75% of sales). The company estimates that 8% of all sales will be returned. How much net revenue will Hollis Industries report at the end of its first year of operations? Net revenue:Suppose we want to compute the four-quarter moving average of Company ABC’s sales as of the beginning of the first quarter of 2022. ABCs sales in the previous four quarters were as follows: 1Q 2021, R 1,200,000; 2Q 2021, R 800,000; 3Q 2021, R 750,000; and 4Q 2021, R 1,600,000. Calculate the four-quarter moving average of sales as of the beginning of the first quarter of 2022.Anusha Berhad’s sales pattern for the first quarter 2021 and projected revenues are as follows: Additional information:i. Historically, Anusha Berhad’s sales were on cash basis.ii. Anusha purchase raw material two month before the sales month and paid in cash equal to 60 percent of its sales.iii. Fixed monthly rent of RM11,000.iv. A depreciation expense is RM400 per month.v. Dividend of RM3,000 will be received at the end of each quarter.vi. Wages and salaries are estimated RM15,000 per month.vii. Anusha decide to repay RM40,000 of their loan on April.viii. Interest on accumulated loan is at 9 percent annual interest and paid in the following month.ix. Ending cash balance for the budget period is RM20,000 and it would like to maintain minimum desired balance of RM20,000 per month. Prepare a monthly cash budget for the first quarter 2021 for Anusha Berhad.