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Patton Corporation had the following items on its financial statements for two recent years: Line Item Description     Year 2     Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s working capital for Year 2. a. $725,000 b. $1,625,000 c. $2,050,000 d. $650,000   2. Patton Corporation had the following items on its financial statements for two recent years: Line Item Description     Year 2     Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s accounts receivable turnover for Year 2. a. 6.7 b. 12.5 c. 14.3 d. None of these choices are correct   3. Patton Corporation had the following items on its financial statements for two recent years: Line Item Description     Year 2     Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s number of days’ sales in inventory for Year 2. a. 3.2 b. 57.8 c. 5.7 d. 6.3

Patton Corporation had the following items on its financial statements for two recent years: Line Item Description     Year 2     Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s working capital for Year 2. a. $725,000 b. $1,625,000 c. $2,050,000 d. $650,000   2. Patton Corporation had the following items on its financial statements for two recent years: Line Item Description     Year 2     Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s accounts receivable turnover for Year 2. a. 6.7 b. 12.5 c. 14.3 d. None of these choices are correct   3. Patton Corporation had the following items on its financial statements for two recent years: Line Item Description     Year 2     Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000 Based on these data, calculate Patton Corporation’s number of days’ sales in inventory for Year 2. a. 3.2 b. 57.8 c. 5.7 d. 6.3

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...
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  1.  Patton Corporation had the following items on its financial statements for two recent years:

    Line Item Description     Year 2     Year 1
    Sales $2,500,000 $2,000,000
    Cost of goods sold 1,975,000 1,600,000
    Cash 500,000 475,000
    Temporary investments 150,000 150,000
    Accounts receivable (net) 200,000 175,000
    Inventory 325,000 300,000
    Accounts payable 450,000 400,000

    Based on these data, calculate Patton Corporation’s working capital for Year 2.

    a. $725,000
    b. $1,625,000
    c. $2,050,000
    d. $650,000

     

    2.  Patton Corporation had the following items on its financial statements for two recent years:

    Line Item Description     Year 2     Year 1
    Sales $2,500,000 $2,000,000
    Cost of goods sold 1,975,000 1,600,000
    Cash 500,000 475,000
    Temporary investments 150,000 150,000
    Accounts receivable (net) 200,000 175,000
    Inventory 325,000 300,000
    Accounts payable 450,000 400,000

    Based on these data, calculate Patton Corporation’s accounts receivable turnover for Year 2.

    a. 6.7
    b. 12.5
    c. 14.3
    d. None of these choices are correct

     

    3.  Patton Corporation had the following items on its financial statements for two recent years:

    Line Item Description     Year 2     Year 1
    Sales $2,500,000 $2,000,000
    Cost of goods sold 1,975,000 1,600,000
    Cash 500,000 475,000
    Temporary investments 150,000 150,000
    Accounts receivable (net) 200,000 175,000
    Inventory 325,000 300,000
    Accounts payable 450,000 400,000

    Based on these data, calculate Patton Corporation’s number of days’ sales in inventory for Year 2.

    a. 3.2
    b. 57.8
    c. 5.7
    d. 6.3

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