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First calculate A/R turnover: A/R Turnover = Sales/ Average A/R A/R days outstanding = Amt. of days in a year (could be 360 or 365 depending on problem) divided by A/R turnover In short, A/R outstanding = 365/accounts receivable turnover.
yes
$500,000
NO, notes receivable is an asset and are listed as such. A receivable is something the company expects to collect over time, account receivable is the account used for accounts that will be paid for in a year or less, while a note receivable is used for ones that are expected to take over a year to pay. Both Accounts receivable and Notes receivable are assets and are listed on the Balance Sheet as such. (GAAP)
Most universities calculate the average of the first and second cumulative average at the end of every academic year.
DateItemDebitCredit25-AprNotes Receivable$4,500Sales$4,50024-JunInterest Receivable$75Interest Revenue$7524-JunAccounts Receivable$4,575Notes Receivable $4,500Interest Receivable$75
(total assets current year + total assets prior year)/2 total assets current year plus total assets prior year then divide that total by two to find the average. Dont over-think this.
Net income divided by total shares = earnings per share or EPS. If you want to calculate the percentage change from year-to-year, just take the (current year EPS / prior year EPS) -1
Accounts receivable turnover ratio = 5338411 / 391648 = 13 times In number of days per year = 360 / 13 = 27 days
Adjusting entries are the accounting entries of rent receivable that are prepared at the end of the financial year. As a result, adjustments are made for the new financial year based on the previous year.
Yes notes receivable is a current assets, if it is converts into cash within one year If notes receivable is a long-term then place notes receivable with all the other non-current assets like investments, property, etc...
To calculate the average of monthly sales, you would need sales data for a period of time such as one year. Then you would add up each month's takings and divide by 12, as there are twelve months in a year.