Determine the receivables turnover

Assignment Help Corporate Finance

Reference no: EM1346766

The Robinson Company has the following current assets and current liabilities for these two years:
2010 2011
Cash and marketable securities $ 50,000 $ 50,000
Accounts receivable 300,000 350,000
Inventories 350,000 500,000
Total current assets $700,000 $900,000
Accounts payable $200,000 $250,000
Bank loan 0 150,000
Accruals 150,000 200,000
Total current liabilities $350,000 $600The Robinson Company from Problem 2 had net sales of
$1,200,000 in 2010 and $1,300,000 in 2011.
a. Determine the receivables turnover in each year.
b. Calculate the average collection period for each year.
c. Based on the receivables turnover for 2010, estimate the investment in receivables if net sales were $1,300,000 in 2011.
d. How much of a change in the 2011 receivables occurred?,000

Reference no: EM1346766

Questions Cloud

Compute the current price of the stock : Laser Optics will pay a common stock dividend of dollar 1.60 at the end of the year. The required rate of return on the common stock is 13 percent. The corporation has a constant growth rate of 7 percent.

Prepare stockholders equity section : On March 1, 2010, Dora Company start operations with a charter it received from state that authorized 50,000 shares of dollar 4 par value common stock. Over next quarter, firm engaged in the transactions that follows;

Expalin what would be the appropriate statistical procedure : Expalin what would be the appropriate statistical procedure to test the following hypothesis: Triglyceride values are a good predictor of weight in obese adults.

Completion of the efficacy testing : Suppose you own stock in the Lewis-Striden Drug Corporation. Assume you had expected following events to occur last month: and the government would declare that real GNP had increase 1.2% during the previous quarter.

Determine the receivables turnover : The Robinson Corporation has the following current assets & current liabilities for two years: Cash and marketable securities $ 50,000 for 2010 and 2011;

Prepare appropriate journal entries to record salaries : Lee Financial Services pays employees monthly. Payroll information is given below for January 2011, 1st month of Lee's fiscal year. Suppose that none of employees exceeded any relevant wage base.

Genetics experiment on peas : In a heredity experiment on peas, one sample of offspring contained 410 green peas & 121 yellow peas. Based on those final outcomes, determine the probability of getting an offspring pea that is green.

Create i.c. optometrys balance sheet : The following are account balances on December 31, 2011 for I.C. Optometry given in alphabetical order;

Hypothetical healthcare organization ratios : Discuss and explain why one should apply caution when using financial ratios for analyzing a healthcare management's current financial position and future viability.

User Account

All Pages