Reference no: EM131110783
An evaluation of the books of Blair Supply, which follows, gives the end-of-year accounts receivable balance, which is believed to consist of amounts originating in the months indicated. The company had annual sales of $2.4 million. The firm extends 30-day credit terms.
Month of origin Amounts receivable
July ................ $ 3,875
August .............. 2,000
September ............ 34,025
October ............. 15,100
November ............ 52,000
December ............. 193,000
Year-end accounts receivable ...... $300,000
a. Use the year-end total to evaluate the firm’s collection system.
b. If 70% of the firm’s sales occur between July and December, would this affect the validity of your conclusion in part a? Explain.
|
The accounts below appear in the ledger of popovich company
: The accounts below appear in the ledger of Popovich Company. From the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method.
|
|
What recommendations relative to the amount
: What recommendations relative to the amount and the handling of inventory could you make to the new owners? What recommendations relative to the amount and the handling of accounts receivable could you make to the new owners? What recommendations rel..
|
|
The company classifies the investments as available for sale
: Ochoa Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company. The company classifies the investments as available-for-sale.
|
|
The balance sheet data of wyeth company at the end of 2010
: The balance sheet data of Wyeth Company at the end of 2010 and 2009 follow. Land was acquired for $30,000 in exchange for common stock, par $30,000, during the year; all equipment purchased was for cash.
|
|
Would this affect the validity of your conclusion
: Use the year-end total to evaluate the firm’s collection system. If 70% of the firm’s sales occur between July and December, would this affect the validity of your conclusion in part a? Explain.
|
|
How would you evaluate the activity of wilkins'' inventory
: Find the average quarterly inventory and use it to calculate the firm's inventory turnover and the average age of inventory. Assuming that the company is in an industry with an average inventory turnover of 2.0, how would you evaluate the activity of..
|
|
Calculate josh''s liquidity ratio
: Calculate Josh's liquidity ratio. Several of Josh's friends have told him that they have liquidity ratios of about 1.8. How would you analyze Josh's liquidity relative to his friends?
|
|
Net income as reported on the income statement
: Plant assets that cost $60,000 and were 80% depreciated were sold during 2010 for $8,000. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings.
|
|
What problems might robert encounter in comparing
: What problems might Robert encounter in comparing these companies to one another on the basis of their ratios? Why might the current and quick ratios for the electric utility and the fast-food stock be so much lower than the same ratios for the other..
|