1/ ABC Co. has an average collection period of 70 days. Total credit sales for t
ID: 2335136 • Letter: 1
Question
1/ ABC Co. has an average collection period of 70 days. Total credit sales for the year were $5,800,000. What is the balance in accounts receivable at year-end? (Use 360 days in a year. Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
$1,127,778
$1,137,778
$5,800,000
$4,060,000
2/ A firm has total assets of $2,010,000. It has $864,000 in long-term debt. The stockholders equity is $664,000. What is the debt to total asset ratio? (Round your answer to the nearest whole percent.)
77%
82%
67%
None of the items
3/
Refer to the tables above. Compute Megaframe's after-tax profit margin.
5.7%
13.2%
15.4%
18.9%
MEGAFRAME COMPUTER COMPANY alance Sheet As of December 31 SSE ash ccounts receivable nvento et plant and equipment otal assets $450,000 LIABILITIE UIT ND ccounts payable CKHOLDERS crued expenses Long-term debt Common stock aid-in capital etained earnings Total liabilities and stockholders' equit $450,000Explanation / Answer
1.
Accounts receivable at the year end = Credit sales / 360 * Average collection period
Accounts receivable at the year end = $5,800,000 / 360 * 70
Accounts receivable at the year end = $1,127,778
Answer is A. $1,127,778
2.
Answer is C. 67%
Note: Total liabilities = Total assets - Stockholders equity
3.
Answer is B. 13.2%
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Debt to assets = Total Liabilities / Total Assets Debt to assets = ($2,010,000 - $664,000) / $2,010,000 Debt to assets = 67%Related Questions
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