Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days’ sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days’ sales ratio is 175 days?
Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days’ sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days’ sales ratio is 175 days?
Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days’ sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days’ sales ratio is 175 days?
You are considering two possible companies for investment purposes. The following data is available for each company.
Company A
Net credit sales, Dec. 31, 2019 $540,000
Net Accounts receivable, Dec 31, 2018 $120,000
Net accounts receivable, Dec 31, 2019 $180,000
Number of days sales in receivables ratio, 2018 103 days
Net Income, Dec. 31, 2018 $250,000
Company B
Net credit sales, Dec. 31, 2019 $620,000
Net Accounts receivable, Dec 31, 2018 $145,000
Net accounts receivable, Dec 31, 2019 $175,000
Number of days sales in receivables ratio, 2018 110 days
Net Income, Dec. 31, 2018 $350,000
Additional Information:
Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet…
2. Using the following select financial statement information from Black Water Industries, compute the accounts
receivable turnover ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a
potential investor about Black Water Industries?
Year
2017
2018
2019
BLACK WATER INDUSTRIES
Net Credit Sales
$685,430
700,290
768,500
Ending Accounts Receivable
$330,250
360,450
401,650
Following is some financial information of 250R Corp:
250 CORP
Statement of Income
For the years ended December 31, 2020 and 2021
Year Ended 31.12.2021
Sales Revenues
Cost of Goods Sold
Gross Margin
Salaries expense
Depreciation expense
Interest expense
Net income
Long-term borrowings
Accounts receivable
Property, plant & equipment (PPE):
Cost
Accumulated Depreciation
$750,000
(300,000)
$450,000
(75,000)
(70,000)
(30,000)
$275,000
Some Selected Balance Sheet Data
As at 31.12.2021
$300.000
$525,000
$350,000
210,000
Year Ended 31.12.2020
$500,000
(200,000)
$300,000
(50,000)
(70,000)
(30,000)
$150,000
As at 31.12.2020
$300.000
$250.000
$350,000
140,000
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