ACC 291 - PRINCIPLES OF ACCOUNTING II Week 1 Assignment

The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $76,000; Credit Sales $819,000; and Sales Returns and Allowances $48,300. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 2

Suppose the following information was taken from the 2014 financial statements of FedEx Corporation, a major global transportation/delivery company.

Calculate the accounts receivable turnover and the average collection period for 2014 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)

Is accounts receivable a material component of the company’s total current assets?

Question 3

Prepare the financial statements of Tootsie Roll.

Calculate the accounts receivable turnover and average collection period for 2011. (Use “Net Product Sales.” Assume all sales were credit sales.) (Round answers to 1 decimal place, e.g. 15.2.)

Question 4

Prepare the financial statements of The Hershey Company and Tootsie Roll.

Based on the information contained in these financial statements, compute the following 2011 values for each company. (Round answers to 1 decimal place, e.g. 15.2.)