CH17 Graded Written Homework PROBLEM 1 Summary information for the financial sta
ID: 2448808 • Letter: C
Question
CH17 Graded Written Homework PROBLEM 1 Summary information for the financial state Name ments of two companies competing in the same industry follows: Loud Clear Loud Data from the current year end balance sheets Assets Data from the current year's income statement Sales Cost of goods sold 5395.600 $669,500 · 292600 482,000 $395.600 Accounts receivable, ner Current notes receivable (trade). 79,100 13.600 88.800 11.700 12.100 72.500 Interest expense.. 11,000 Income tax expense 220012400 14300 7.900 7,700 12.400 Basic earnings per sr 223 Plane assets, nee . Total assets 178900 254.300 47 Beginning ofyear balance sheet data Liabilities and Equity 2500 99000 c 5,000 99000 Current notes receivable 95.300 Merchandise inventory. 3 92.500 Long-cerm notes payabie Common sbock $5 par value Retained earnings Toal labives and equity ....$394 100 107,100 385.400 135,000 51,100 71600 35,100 Common stock $5 par value 135,000 3000 143000 40 R Reained earnings 51,100 111.200 111.700 Part A:Explanation / Answer
AR Turnover calculation Amounts in $ Details Loud company Clear Company a Beginning of the Year Net Accounts Receivable 74,200 75,300 b End of the Year Net Accounts Receivable 79,100 72,500 c Average Net Accounts Receivable for the Year =a+b/2 76,650 73,900 d Sales 395,600 669,500 (All sales assumes as credit sale) e Account receivable Turnover =Sales/Avergae Account Receivables =d/c 5.16 9.06