![makailaaa2](/avatars/28619.jpg)
makailaaa2
07.04.2020 •
Business
Inverness Steel Corporation is a producer of flat-rolled carbon, stainless and electrical steels, and tubular products. The company's income statement for the 2016 fiscal year reported the following information ($ in millions):
Sales $ 6,100
Cost of goods sold 5,100
The company's balance sheets for 2016 and 2015 included the following information ($ in millions):
2016 2015
Current assets:
Accounts receivable, net $ 702 $ 602
Inventories 890 814
The statement of cash flows reported bad debt expense for 2016 of $6 million. The summary of significant accounting policies included the following notes ($ in millions):
Accounts Receivable (in part)
The allowance for uncollectible accounts was $8 and $5 at December 31, 2016 and 2015, respectively. All sales are on credit.
Inventories
Inventories are valued at the lower of cost or market. The cost of the majority of inventories is measured using the last in, first out (LIFO) method. Other inventories are measured principally at average cost and consist mostly of foreign inventories and certain raw materials. If the entire inventory had been valued on an average cost basis, inventory would have been higher by $460 and $310 at the end of 2016 and 2015, respectively.
During 2016, 2015, and 2014, liquidation of LIFO layers generated income of $4, $5, and $23, respectively.
Required:
1.
Determine the amount of accounts receivable Inverness wrote off during 2016. (Enter your answer in millions.)
2.
Calculate the amount of cash collected from customers during 2016. (Enter your answer in millions.)
3.
Calculate what cost of goods sold would have been for 2016 if the company had used average cost to val
4.
Calculate the following ratios for 2016. (Round "Receivables turnover ratio" and "Inventory turnover ratio" answers to 2 decimal places. Round "Gross profit ratio" answer to nearest percent (i.e., 0.123 needs to be entered as 12%).)
ue its entire inventory. (Enter your answer in millions.)
Solved
Show answers
More tips
- S Science and Technology Colliders: How They Work and Why They Matter...
- S Science and Technology Exploring Our Galaxy: How Many Planets are in the Milky Way?...
- W Work and Career Everything You Need to Know About MBA Programs...
- B Business and Finance What is the Difference Between Visa and Visa Gold?...
- C Computers and Internet The Twitter Phenomenon: What it is and How to Use it...
- S Sport When and Where Will the 2014 World Cup be Held?...
- S Sport When is the Champions League final?...
- C Construction and repair How to Choose the Best Underfloor Heating?...
- A Animals and plants How ants survive winter: exploring the secrets of their winter life...
- A Auto and Moto How to Choose a Car Wash? Tips and Recommendations...
Answers on questions: Business
- B Business There different ways to Study POM. Discuss three approaches...
- B Business N the short-run, a firm cannot vary its capital, Kequals4, but can vary its labor, L. It produces output q. Explain why the firm will or will not experience diminishing...
- B Business Carolina Company uses the LIFO method for valuing its ending inventory. The following financial statement information is available for its first year of operation:...
- B Business Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption when calculating GDP? a. the purchase...
- B Business Manuel and Jones operate a partnership with beginning-year capital balances of $50,000 each. During the year, Santiago joins the partnership by investing $20,000 cash....
- B Business Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas s fastest-moving inventory...
- B Business A European plastics manufacturer, is considering forming an alliance with a U.S. military goods manufacturer to develop a new type of polymer that can be used for...
- B Business Mrs. Jones, an appraiser, is appraising a single family residence for which she has located six comparable properties, all sold within the past six months. The subject...
- H Health What does the supplemental nutrition assistance program (snap) provide?...
- C Chemistry Select the charge balance equation for an aqueous solution of mncl2mncl2 that ionizes to mn2+mn2+ , cl−cl− , mncl+mncl+ , and mnoh+mnoh+ . [h+]+[mn2+]+[mncl+]+[mnoh+]=2[cl−]+[oh−][h+]+[mn2+]+[mncl+]+[mnoh+]=2[cl−]+[oh−]...
Ответ:
3million Usd, 5794million Usd, 4950million Usd, 16%
Explanation:
1) Accounts receivable Inverness wrote off during 2016.
Accounts receivable write off
= balance of beginning of the year + bad debt expenses - balance at the end of the year.
Inputting the figures, we will have;
= $5million + $6million - $8million
= $3million.
Please kindly check attachment for step by step solution of the answers.
Ответ:
B
Explanation: