Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

                                                  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  $600,000

1) The Robinson Company had net sales of $1,200,000 in 2010 and $1,300,000 in 2011.

a) Find out the receivables turnover in each year.

b) Compute average collection period for each year.

c) Based on receivables turnover for 2010, evaluate the investment in receivables if net sales were $1,300,000 in 2011.

d) How much of a change in the 2011 receivables occurred?

2) Assume the Robinson Company had a cost of goods sold of $1,000,000 in 2010 and $1,200,000 in 2011.

a) Compute inventory turnover for each year. Comment on your findings.

b) What would have been a amount of inventories in 2011 if 2010 turnover ratio had been maintained?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914557

Have any Question? 


Related Questions in Basic Finance

A random sample of the birth weights of 186 babies has a

A random sample of the birth weights of 186 babies has a mean of 3103 g and a standard deviation of 691 g. Construct a 98% confidence interval estimate of the mean birth weight for all such babies. What is the confidence ...

Problem -the balance sheet of perseverance corporation on

Problem - The balance sheet of PERSEVERANCE CORPORATION on December 31, 2005, includes the following cash and receivable balances: Cash - Davao Bank   P 45,000 Currency and coins   16,000 Petty cash fund   1,000 Cash in ...

Options can protect a firm against the downside risk of a

Options can protect a firm against the downside risk of a business transaction while preserving the upside potential from the transaction. In contrast, forward and futures contracts normally protect against the downside ...

1 what can researchers do to minimize error variance2

1. What can researchers do to minimize error variance? 2. Discuss the trade-off between internal and external validity. Which is more important? Explain.

Assignment learning outcomes covered1 to enable students to

Assignment Learning Outcomes Covered 1. To enable students to explore and develop an understanding of the theoretical techniques, concepts and methods employed in finance. 2. To develop the ability to apply the theoretic ...

1 what is meant by loan servicing2 identify the principal

1. What is meant by loan servicing? 2. Identify the principal sources of mortgage company income. 3. How does the Farm Credit System structure the various agencies that handle oversight of the farm mortgage lending funct ...

Assignment capital investments in emerging marketsuse the

Assignment: Capital Investments in Emerging Markets Use the Internet and/or Strayer Learning Resource Center to research a global manufacturing company of your choice. Review the current plans that your selected company ...

Results reported in the chapter show that by including

Results reported in the chapter show that by including either REITs or the NCREIF Index in a portfolio containing S&P 500 securities, corporate bonds, and T-bills, diversification benefits result. Why is this true? Do th ...

Suppose someone offers you the following gamble you pay 7

Suppose someone offers you the following gamble: You pay $7 and toss a coin. If the coin comes up heads, he pays you $10, and if tails comes up, he pays you $5. You in turn get the idea of offering another person a coin ...

One of the behavioral research case studies in this chapter

One of the Behavioral Research Case Studies in this chapter involved Agocha and Cooper's (1999) study of partner characteristics and intentions to practice safe sex. Below are the Pearson correlations between the lik ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen