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gizmo_the_mogwai [7]
2 years ago
9

Excerpts from Huckabee Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receiv

able $ 87,000 $ 79,000 Merchandise inventory 65,000 79,000 Net sales 407,000 379,000 Cost of goods sold 247,000 227,000 Huckabee's 2021 receivables turnover (rounded to 2 decimal places) is:
Business
1 answer:
quester [9]2 years ago
4 0

Answer:

Huckabee's 2021 receivables turnover (rounded to 2 decimal places) is 4.90 times

Explanation:

The accounts receivable turnover is an efficiency ratio that measures how many times a company can collect its receivables or money owed by clients during the year.

Accounts receivable turnover is calculated by following formula:

Accounts Receivable Turnover = Net Credit Sales /Average Accounts Receivable

In there:

Average Accounts Receivable = (The beginning accounts receivable of the period balance + The ending accounts receivable of the period balance)/2

In Huckabee Company, Average Accounts Receivable = ($87,000 + $79,000)/2 = $83,000

Huckabee's 2021 Accounts Receivable Turnover = Net sales in 2021/Average Accounts Receivable  = $407,000/$83,000 = 4.90 times

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A manufacturing company plans to forecast its sales. Upper management plans to assemble its most senior personnel to have meetin
ludmilkaskok [199]

Answer:

B. Jury of executive opinion method.

Explanation:

There are several methods of forecasting sales, one of which is Jury of executive opinion method. In this method, senior executives in an organization are called upon by the upper management to analyze, deliberate and come up with what probably will be the future sales of the organization which will in turn drive future revenue.

In as much as the people involved have experience in terms of forecasting, their overall submission will form the basis of future sales forecast of the organization.

Unlike Delphi method which involves the use of experts in analyzing and forecasting future sales and whose procedure is somewhat rigorous and formal, jury of executive opinion is not formal and only rely on the outcome of deliberations done by the managers appointed by the organization.

Other method of sales forecast are market share method, buyer intention method. etc.

5 0
2 years ago
A ________ is a partnership in which two or more companies (often from different countries) join together and share the risk and
GenaCL600 [577]

Answer:

The correct answer is letter "B": joint venture.

Explanation:

Two or more companies in a traditional joint venture plan to commit capital and resources to a specific project. Developers, manufacturers, and service providers typically agree to form a joint venture. If successful, those parties divide the income based on the value of their respective joint venture contributions.

4 0
2 years ago
A venture has net sales of $400,000, cost of goods sold of $200,000, operating expenses (selling, general, and administrative) o
Sphinxa [80]

Given:

Net sales = $400000

Cost of goods sold = $200,000

Operating expenses = $100,000

Interest expenses = $50,000

To find:

The operating profit margin

Solution:

To calculate the operating profit margin, first we have to find the operating profit.

Subtract your total operating expenses from gross profit to calculate operating profit.

That is, \text{Operating profit}=\text{Sales (Revenue) - Cost of goods sold - Operating expenses}\Rightarrow \$400000-\$200000-\$100000=\$100000

Divide operating profit by gross revenue to calculate operating profit margin.

\text{Operating profit margin} = \frac{\text{Operating profit}}{\text{Gross Revenue}}\times100

\Rightarrow\frac{100000}{400000}\times100=25\%

Therefore, the Operating profit margin is 25%.

4 0
2 years ago
Donna formed a corporation several years ago by issuing 500 shares of stock. There are 10 shareholders, with the smallest shareh
Stels [109]

Answer:

A) If Donna's corporation will not accept new shareholders, they can raise money by issuing bonds or getting a bank loan.

B) Maybe the current shareholders don't want to divide their power within the corporation, so maybe Donna can convince them of issuing preferred stocks which does not give the new stockholders voting rights.

4 0
2 years ago
A bond has a current yield of 9% and a yield to maturity of 10%. Is the bond selling above or below par value?
CaHeK987 [17]

Answer:

The current yield = 9%

The yield to maturity = 10%

The price of the bond will be below the par value and called as discount bonds. This is because the bond and yield to maturity holds the inverse relationship. Therefore, the bond will be issued at discount, below the par value because yield to maturity is greater than current yield.

7 0
2 years ago
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