Required : Compute the missing amount in theparis-perfume.com financial statemen

Question

Required: Compute the missing amount in theparis-perfume.com financial statement information, indicated by ???in the table above.   Show all calculations.

Explanation / Answer

x.j5> Accounts Receivable Turnover = [Net Sales / Average Accounts Receivables] 8.0 = [$1,000,000,000 / Average Accounts Receivables] Average Accounts Receivables = [$1,000,000,000 / 8.0] Average Accounts Receivables = $125,000,000 Average Accounts Receivables = [Beginning Receivables + Ending Receivales] / 2 $125,000,000 = [($100,000,000 + Ending Receivables) / 2] $125,000,000 * 2 = $100,000,000 + Ending Receivables $250,000,000 = $100,000,000 + Ending Receivables $100,000,000 + Ending Receivables = $250,000,000 Ending Receivables = $250,000,000 - $100,000,000 Ending Receivables (December 31, 2008) = $150,000,000 Other Assets = [Total Assets - (Accounts Receivables + Inventory] Other Assets = [$400,000,000 - ($150,000,000 + $70,000,000)] Other Assets = [$400,000,000 - $220,000,000] Other Assets = $180,000,000 Return on Assets = [Net Income / Total Assets 10% = [$40,000,000 / Total Assets] 0.10 = [$40,000,000 / Total Assets] Total Assets = [$40,000,000 / 0.10] Total Assets = $400,000,000

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.