User Account

All Pages

Calculate accounts receivable turnover ratio for each firm

Assignment Help Financial Accounting
Reference no: EM132931149

Sensitron and Douglas Tools manufacture and market power tools and accessories. Sensitron targets customers in the professional contractor market, while Douglas Tools focuses on home users and professionals.

Selected financial data for the companies appears below.

Sensitron                                                   2010                      2009                  2008

Sales                                             $2,109,100            $2,095,700     $2,175,700

Average Accounts Receivable              564,500                   608,650           631,072

Change in Sales from previous year         0.64%                  -3.68%                  11.83%

Douglas Tools                                               2010                      2009                        2008

Sales                                                $4,394,000            $4,245,600          $4,474,900

Average Accounts Receivable                 718,800                745,850                    803,150

Change in Sales from previous year             3.50%                  -5.12%                     0.59%

Required:

Problem 1. Calculate the accounts receivable turnover ratio for each firm for year 2010, 2009, 2008.

Problem 2. Suggest reasons for the differences in the accounts receivable turnover ratios for these two

Reference no: EM132931149

Questions Cloud

By how much will the return on equity change : Its operating income (EBIT) is $2 million, and it pays taxes at a 25 percent rate. By how much will the return on equity change
Calculate the receivables turnover ratio : Calculate the receivables turnover ratio. Sales returns and allowances with a total sales price of $42,000 and a cost of $36,540 were restored to inventory.
How would find the annualized dividend growth rate : How would find the annualized dividend growth rate from the 5-year dividend history? 7/26/16 = 0.15. 10/25/19 = 0.15. 1/18/17 = 0.20.
Can he switch to the standard mileage method : If Ariff originally chooses the actual method and elects a Section 179 expense deduction, can he switch to the standard mileage method
Calculate accounts receivable turnover ratio for each firm : Sensitron and Douglas Tools manufacture, Calculate the accounts receivable turnover ratio for each firm for year 2010, 2009, 2008.
How would that affect our hpc requirements : How would you need to adapt your code to work with carbon monoxide (CO) for example - How would that affect our HPC requirements, e.g. number of processors
What means production with best technological specifications : What is the relation of Managerial Economics to Other Disciplines? What means production with best technological specifications?
Develop a product from the initialstage of requirement : Develop a product from the initialstage of requirement/analysis all the way through development toits final stages of testing/evaluation
What two fields are applied to managerial economics : What problems are Managerial Economics and Traditional Economics concerned with? What two fields are applied to managerial economics?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Take close look at the specific parts of critical thinking

Take a close look at the specific parts of critical thinking. When have you used these skills? Think about writing assignments, class discussions, presentations, and other past coursework you have completed. Identify one assignment you have completed..

  What is the total direct labor variance

The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour. If in producing 2,300 units, the actual direct labor cost was $46,000 for 3,000 direct labor hours worked, what is the total direct labor variance?

  Calculate cash flows with sales

how do you calculate cash flows with sales of 1 millions dollars the first year and increases of 8% over the next 2 years with a net working capital of 10%

  Explain by how much will roger tax liability decline

If the investment is of a type that produces a tax credit of 40% of the amount of the expenditure, explain by how much will Roger’s tax liability decline because of the investment?

  What is the effect of the valuation allowance entry

What is the effect of the Valuation Allowance entry on the financial statements? When a company with taxable income finds that it is more likely than not.

  Calculate depreciation on the system

The units-of-production method will be used to calculate depreciation on the system and as at December 31, 2020, the system had been used 1,000 hours

  Contrast the between a stock dividend vs a stock split

Contrast the differences between a stock dividend and a stock split. Determine whether you would prefer to see the company declare a 100% stock dividend

  What price must company typically pay to buy another company

What price must a company typically pay to buy another company? The price will? include some premium over the current market value of the target's equity.

  Which is incorporated in the state of alpha

You are the 100% owner of X Corporation, which is incorporated in the state of Alpha and has its principal place of business there. Your company has 5 employees, including you, and does computer consulting services for small businesses. You do all of..

  How would you advise the partners in developing a method

How would you advise the partners in developing a method for dividing income - Sanchez believes the income should be divided 7:3, favoring Sanchez, since Sanchez provides the majority of effort in running the partnership business.

  What is the net present value if the cost of capital

Schaefer Organic Farms purchased a new tractor at a cost of $80,000. Annual operating cash inflows are expected to be $30,000 each year for four years. At the end of the tractor's useful life, the salvage value of the tractor is expected to be $5,000..

  Identifying normal balance as a debit or credit

Identifying normal balance as a debit or credit, Indicate whether the normal balance of each of the following accounts is a debit or a credit

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd