24 - 25Sales for the year amount to PHP100.000, Accounts receivable amount to PHPT2,000. What is the average collection period assuming annual data are used? What is the average collection period assuming quarterly data are used?
24 - 25Sales for the year amount to PHP100.000, Accounts receivable amount to PHPT2,000. What is the average collection period assuming annual data are used? What is the average collection period assuming quarterly data are used?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:24 - 25Sales for the year amount to PHP100.000. Accounts receivable amount to PHPT2,000.
What is the average collection period assuming annual data are used? What is the average
collection period assuming quarterly data are used?
26 - 28 The quick ratio is 1.7 while the current ratio is 2.5. The current liabilities amount to
PHP5,000. Cost of goods sold is PHP52,500. What is the inventory turnover? Average age of
inventory?
29 - 31. Beginning inventory is PHP2,000 while ending inventory is PHP5,000. Cost of goods
sold is double the ending inventory and accounts payable is PHP4,000. What is accounts payable
turnover? Average payment period?
ESSAY
32 - 34. Ending inventory is PHP13,000 while accounts payable is PHP2,500. Purchases were
half the ending inventory. What is accounts payable turnover? Average age of payables?
35 - 37 Current assets amount to PHP30,000 while noncurrent assets are PHP50,000, Sales
amount to PHP200,000. What is the total asset turnover?
38 - 40. Based on your answers from letters c, d, and e, what is the operating cycle of the
company? Casł conversion cycle?
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