## FA Mod 5 Accounts receivable inventory accounts payable practice exam...

 Author Message NEAS Supreme Being Group: Administrators Posts: 4.2K, Visits: 1.2K FA Module 5 Accounts receivable inventory accounts payable practice exam questions(The attached PDF file has better formatting.)In 20XX, a firm pays 344 to suppliers for purchases of inventory, its gross profit margin is 68%, and 55% of its sales are on credit. The balance sheet figures for 20XX are    January 1, 20XX    December 31, 20XXAccounts receivable     134    120Inventory         132    165Accounts payable     167    178Question 5.1: Inventory boughtHow much inventory was bought during the year?Answer 5.1: 344 + (178 – 167) = 355(inventory bought = payments to suppliers + Δ(accounts payable) )Question 5.2: Cost of goods soldWhat is the cost of goods sold during the year?Answer 5.2: 355 – (165 – 132) = 322(cost of goods sold = inventory bought during year – Δ(inventory) )Question 5.3: Inventory turnover What is the inventory turnover for the year?Answer 5.3: 322 / ( (165 + 132) / 2) = 2.168(inventory turnover = cost of goods sold / average inventory)Question 5.4: Net revenueWhat is the net revenue during the year?Answer 5.4: 322 / (1 – 68%) = 1,006.25(net revenue = cost of goods sold / (1 – gross profit margin) )Question 5.5: Receivables turnover What is the receivables turnover for the year?Answer 5.5: (1,006.25 × 55%) / ( (134 + 120) / 2) = 4.358(receivables turnover = credit sales / average accounts receivable)Question 5.6: Cash received from customersWhat is the cash received from customers during the year?Answer 5.6: 1,006.25 – (120 – 134) = 1,020.25(cash received from customers = net revenue – Δ(accounts receivable) ) Attachments
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