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

What ethical considerations might enter into decisions that

What ethical considerations might enter into decisions that result in cash flow and stock price effects that are valued lower than they might otherwise have been?

Using the following information calculate the total

Using the following information, calculate the total salesforce size necessary by using each of the following approaches: breakdown, workload, and incremental. Be sure to show your work. Also, explain the advantages and ...

Visit the website for your state homeland security office

Visit the website for your state homeland security office. Where in government is this office? What grants and other assistance does it provide to local governments and citizens of the state? Is this office colocated wit ...

Wiggle pools has total equity of 358200 and net income of

Wiggle Pools has total equity of $358,200 and net income of $47,500. The debt-equity ratio is .68 and the total asset turnover is 1.2. What is the profit margin?

Answer the following questions as they relate to implied

Answer the following questions as they relate to implied volatilities. a. Can implied volatilities be expected to vary for options on the same stock with the same exercise prices but different expirations? b. Can implied ...

Evaluate the quality of internet resourcesselect two

Evaluate the quality of Internet resources. Select two Internet resources and evaluate them based on the five criteria: authority, accuracy and reliability, purpose/objectivity, coverage, and currency. Search for news ab ...

Classify all of your spending into categories such as car

Classify all of your spending into categories such as car, rent, school expenses, clothing, and entertainment. Determine the proportion of your cash outflows that are allocated toward each of these categories. Describe t ...

Consider a two-period two-state world let the current stock

Consider a two-period, two-state world. Let the current stock price be $35 and the risk-free rate be 5%. In each period, the stock price can either go up by 10% or down by 10%. A call option expiring at the end of the se ...

Principles of financecorporations often use different costs

Principles of Finance Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying ...

1 present value of annuity what formula is used to

1. Present Value of Annuity. What formula is used to determine the present value of an annuity? What does the present value of an annuity indicate? 2. Future Value of Annuity. How would you modify the FVA equation to det ...

  • 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