Novak Corp. had accounts receivable of $140,000 on January 1, 2022. The only transactions that affected accounts receivable during 2022 were net credit sales of $3,795,000, cash collections of $3,725,000, and accounts written off of $20,000.

Required:
a. Compute the ending balance of accounts receivable.
b. Compute the accounts receivable turnover for 2016.
c. Compute the average collection period in days.

Answers

Answer 1

Answer:

a $210,000

b 21.69 times

c 16.83 average days

Explanation:

a. The ending balance of accounts receivable

= Accounts receivables at the beginning - Cash collections + Net Credit sales

Given that;

Accounts receivables at the beginning = $140,000

Cash collections = $3,725,000

Net Credit sales = $3,795,000

Ending balance of accounts receivable

= $140,000 + $3,795,000 - $3,725,000

= $210,000

b. Compute the accounts receivable turnover

= Net credit sales + [(Beginning account receivable + Ending account receivable) / 2]

= $3,795,000 ÷ [ ($140,000 + $210,000)/2]

= $3,795,000 ÷ $175,000

= 21.69 times

c. Compute the average collection period

= Average accounts receivable ÷ [Annual sales ÷ 365]

= $175,000 ÷ ($3,795,000 ÷ 365)

= $175,000 ÷ $10,397

= 16.83 average days to collect receivables


Related Questions

Although the cost-plus method approach to product pricing may be used by management as a general guidance, when are some examples of other factors that managers should also consider in setting product prices?

Answers

Answer: value-based pricing.

Explanation:

In its literal sense, value-based pricing means basing pricing on the advantages of the product perceived by the consumer rather than on the exact cost of product creation. A painting, for example, may be priced as much more than canvas and paint prices: in fact, the price depends a lot on who the painter is.

X Corporation and its two divisions, Domestic and Foreign, appear below:

Sales revenues, Domestic $640,000
Variable expenses, Domestic $371,300
Traceable fixed expenses, Domestic $76,500
Sales revenues, Foreign $493,900
Variable expenses, Foreign $281,800
Traceable fixed expenses, Foreign $63,900

In addition, X's common fixed expenses totaled $173,300 and were allocated as follows: $90,000 to the Domestic division and $83,300 to the Foreign division.

What is the segment margin for the Domestic division?

a. $178,700
b. $371,300
c. $102,200
d. $192,200

Answers

Answer:

d. $192,200

Explanation:

Preparation for What is the segment margin for the Domestic division

DOMESTIC division FOREIGN division

Sales revenues $640,000 $493,900

Less Variable expenses ($371,300) ($281,800)

Contribution margin $268,700 $212,100

($640,000-$371,300) ($493,900-$281,800)

Less Traceable fixed expenses ($76,500) ($63,900)

SEGMENT MARGIN $192,200 $148,200

(268,700-$76,500) (212,100-$63,900)

Therefore the segment margin for the Domestic division will be $192,200

Which of the following is NOT a step involved in creating a budget?
Gather financial records
O Track spending
O Expand earning avenues
Balance the budget

Answers

Answer:

expand earning avenues

Explanation:

Expand Earning Avenues is not a step involved in creating a budget. Hence, option C is appropriate.

What does it mean to Create a Budget?

Creating a Budget is one of the most important things, which signifies that during a particular fiscal year or for a short time, a company, an institute, or something of much more importance does follow a certain type of Budget related behavior.

Creating a Budget is being done for a lot of things including the most important thing is to keep proper track of the proceedings which are being gone on.

Budget creation is done annually in the parliament to produce a lot of things on which the Government will run the country. The other most important factor is the process of combining the percentage of the money which is going to be spent.

Hence, option C is correct.

Learn more about Creating Budgets here:

https://brainly.com/question/18484668

#SPJ2

Why is it important to demonstrate a positive work attitude in the workplace?
to be seen as trustworthy and reliable
to be seen as coachable and flexible
to be seen as willing to delegate tasks
to be seen as easily persuadable

Answers

Answer:

To be seen as trustworthy and reliable

Explanation:

Cause in a working environment, you want to be known as a trustworthy, and reliable worker. Which allows you to have much more career possibilitties.

Answer:

A. to be seen as trustworthy and reliable

Explanation:

i just took the test

Kevin McCormick is buying a sports utility vehicle at a car dealership. The base price is $25,565; the factory installed options totaled $2,764; and the destination charge is $495. What is the sticker price?

Answers

Answer:

$28, 824

Explanation:

The sticker price is also known as the MSRP, or the manufacturer recommended retail price. It includes any dealer-installed accessories, any fees, and add-on products plus dealer markup.

The sticker price is this scenario will include

The base value  $25,565, plus factory installed options  $2,764, plus the destination charge $495.

=  $25,565 + $2,764 + $495.

= $28, 824

SartainC orporation is planning its annual budget and has the following beginning and ending inventory levels planned for the year.

Beginning Inventory Ending Inventory
Finished goods (units) 22,000 32,000
Raw material (grams) 52,000 42,000

Each unit of finished goods requires 3 grams of raw material. The company plans to sell 170,000 units during the year. How much of the raw material should the company purchase during the year?

a. 552,000 grams
b. 540,000 grams
c. 530,000 grams
d. 582,000 grams

Answers

Answer:

c.530,000 grams

Explanation:

Calculation for How much of the raw material should the company purchase during the year

First step is to prepare the Production Budget

PRODUCTION BUDGET

Budgeted unit sales 170,000

Add desired ending finished goods inventory

32,000

Total 202,000

(170,000+32,000)

Less beginning finished goods inventory (22,000)

Required production in units 180,000

(202,000-22,000)

Second step is to prepare Materials Budget

MATERIALS BUDGET

Raw materials required for production 540,000

(180,000*3 grams)

Add desired ending finished goods inventory

42,000

Total raw materials needed 582,000

(540,000+42,000)

Less beginning finished goods inventory (52,000)

Required material purchases 530,000 grams

(582,000-52,000)

Therefore the amount of the raw material that the company should purchase during the year is $530,000 grams

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