Accounts Receivable Turnover - Statement of Cash Flows
Not what you're looking for?
Problem 7-3 Accounts Receivable Turnover for Coca-Cola and PepsiCo (p. 355)
1. Calculate the accounts receivable turnover ratios for Coca-Cola and PepsiCo for 2006.
Coca-Cola PepsiCo
Net revenue = $24,088 Net revenue = $35,137
Acct receivable = $2,587 Acct receivable = $3,725
$24,088/$2,587 = 9.31 $35,137/$3,725 = 9.43
2. Calculate the average collection period, in days, for both companies for 2006. Comment on the reasonableness of the collection periods for these companies considering the nature of their business.
Problem 7-7 Effects of Changes in Receivable Balances on Statement of Cash Flow (p. 356)
Stegner, Inc.
Balance Sheet
For the Year Ended December 31, 2008 and 2007
12/31/08 12/31/07
Cash $105,000 $110,000
Accounts receivable 223,000 83,000
Notes receivable 95,000 100,000
Stegner reported net income of $130,000 for 2008. No other current assets or liabilities nor any investing or financing activities.
1. Prepare Stegner's 2008 statement of cash flows.
Stegner, Inc.
Statement of Cash Flow
For Year Ended December 31, 2008
Net income $130,000
Cash 105,000
Accounts receivable 223,000
Notes receivable 95,000
2. Draft a brief memo to the owner to explain why cash decreased during a profitable year.
Purchase this Solution
Solution Summary
Account receivable turnovers for statements of cash flows is determined.
Solution Preview
See attached file for proper format and formulas.
1. Calculate the accounts receivable turnover ratios for Coca-Cola and PepsiCo for 2006.
Coca-Cola PepsiCo
Net revenue = $24,088 Net revenue = $35,137
Acct receivable = $2,587 Acct receivable = $3,725
$24,088/$2,587 = 9.31 $35,137/$3,725 = 9.43
2. Calculate the average collection period, in days, for both companies for 2006. Comment on the reasonableness of the collection periods for these companies considering the nature of their business.
average collection ...
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.