Receivables turnover shows that Wilbert either has a tighter credit policy only

Receivables turnover shows that wilbert either has a

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Receivables turnover shows that Wilbert either has a tighter credit policy (only sell to customers with good credit so less bad debts) or shorter credit terms. Wilbert Industry Current ratio 3.20 3.10 Quick ratio 1.52 1.20 Profit margin 11.25% 12.00% Return on equity 56.96% 73.00% Debt to total assets 58.42% 41.00% Receivables turnover 17.39X 14.60 Times interest earned 4.0X 8.00
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Wilbert Robinson Financial Textbooks Income Statement For the Year Ended December 31, 2019 Sales (all on credit) 4,000,000 Cost of goods sold 2,400,000 Gross margin 1,600,000 Selling and admin expenses 800,000 Earnings before interest and taxes 800,000 Interest expense 200,000 Earnings before taxes 600,000 Taxes 150,000 Net income 450,000 Wilbert Robinson Financial Textbooks Balance Sheet As at December 31, 2019 Assets Current Assets Cash 150,000 A/R 230,000 Inventory 420,000 Total current assets 800,000 Property, plant and equipment (net) 1,100,000 Total assets 1,900,000 Liabilities Current liabilities A/P 155,000 Current portion of long term debt 95,000 Total current liabilities 250,000 Long term debt 860,000 Total liabilities 1,110,000 Shareholders equity Common shares (10,000 shares) 170,000 Preferred shares (5,000 shares) 100,000 Retained earnings 520,000 Total Shareholders equity 790,000 Total liabilities plus shareholders equity 1,900,000
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Problem 2) The Cost Volume Profit Statement for Ann’s Winery (selling and producing 20,000 bottles of wine) is stated below: Per unit Total Volume 20,000
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  • Fall '16
  • Balance Sheet, Wilbert, Wilbert Robinson Financial Textbooks

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