A company with a low inventory turnover requires a smaller investment in inventory than one producing the same sales with a higher turnover.

Otello Company reported Net sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from financing activities generally affect:

The direct method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities.

Investing activities involve the buying and selling of assets such as land and equipment that are held for long-term use in the business.

Dividing ending inventory by cost of goods sold and multiplying the result by 365 is the:

The correct adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31 is:

Refer to the following selected financial information from Yankee, LLC. Compute the company’s working capital for Year 2.    Year 2   Year 1 Cash $ 37,500   $ 36,850   Short-term investments   90,000     90,000   Accounts receivable, net   85,500     86,250   Merchandise inventory   121,000     117,000   Prepaid expenses   12,100     13,500   Plant assets   388,000     392,000   Accounts payable   113,400     111,750   Net sales   711,000     706,000   Cost of goods sold   390,000     385,500    

The interest accrued on $7,500 at 6% for 90 days is: (Use 360 days a year.)

The time period assumption: