48. From the following data compute the duration of the operating cycle for each of the two years and comment on increase or decrease. Rs. thousands year 1 year2 stocks : raw material 20 27 work-in process 14 18 finished goods 21 24 purchases 96 135 cost of goods sold 140 180 sales 160 200 debtors 32 50 creditors 16 18 Assume 360 days per year for computational purpose.

48. From the following data compute the duration of the operating cycle for each of the two years and comment on increase or decrease. Rs. thousands year 1 year2 stocks : raw material 20 27 work-in process 14 18 finished goods 21 24 purchases 96 135 cost of goods sold 140 180 sales 160 200 debtors 32 50 creditors 16 18 Assume 360 days per year for computational purpose.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Torrid Romance Publishers has total receivables of $2,300.00, which represents 24.00 days’ sales.…

A: Total receivable = $2300.00 Average receivable period = 24 days Turnover = 2300/(365/24) =…

Q: Pollack Industries provides the following information: Desired rate of return Cost of assets 8%…

A: Solution 1: Book value of asset at beginning of 3rd year = Cost of assets - Accumulated depreciation…

Q: Money is invested at 11.94% p.a. compounded semi-annually for 43 months. What is the numerical value…

A: Part 2: Explanation:Step 1: Determine the effective interest rate per compounding period.Given that…

Q: ABC Co has sales of $76m for the previous year. Receivables days are 58 and receivables are financed…

A: Accounts Receivables represents the amount the customers owe to the corporation on the account of…

Q: Assume that Major Manuscripts, Inc. is currently operating at 95 percent of capacity and that sales…

A: The process of creating, executing, and managing a budget is known as budgeting. Budget planning and…

Q: The following data pertain to Waramutse's most recent year of operations. Income $ 12,500,000…

A: Waramutse's residual income for the year is $6,890,000.Explanation:To compute Waramutse's residual…

Q: An Investment center has sales of $30,000,000, income of $9,000,000, and average assets of…

A: Residual income is calculated as excess return over the required return on assets

Q: The following data has been provided for a company's most recent year of operations: Return on…

A: Residual income = Average operating assets * ( Return on investment - Minimum required rate of…

Q: Use this information for Mason Corporation to answer the question that follow. Mason Corporation had…

A: The money that left over in the business after paying off all expenses and costs is called as…

Q: 1) Booth Inc. has the following information for its first year of operations: Revenues (250,000…

A: Hi studentSince there are multiple questions, we will answer only first question.The income…

Q: Alexander Inc. makes basketballs. The results for the year were as follows: Basketballs…

A: Assets turnover ratio: Assets turnover ratio measures the efficiency of a company's assets to…

Q: Alexander Inc. makes basketballs. The results for the year were as follows: Basketballs…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Fires Inc. has a cash conversion cycle of 3 weeks. It has a receivable turnover of 45 and disburse…

A: Return on assets indicates the firm's profitability on total assets. It can be calculated by…

Q: Assume a firm has a cash cycle of 54 days and an operating cycle of 77 days. What is its payables…

A: Operating cycle :— It is the sum of days in receivable and days in inventory. Cash Cycle :— It is…

Q: Complete the table by determining the balance A for P dollars invested at rate r for t years and…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Ashvin

A: The objective of the question is to calculate the working capital turnover ratio. The working…

Q: es Currently, Atlas Tours has $5.4 million in assets. This is a peak six-month period. During the…

A: The objective of the question is to calculate the earnings after taxes for Atlas Tours under two…

Q: A company reported the following for its most recent year of operations: Return on investment…

A: Average operating assets = $ 170,000 Return on investment = 20% Net income = Average operating…

Q: Required rate of return is 12% a year. Sales revenue is $2,000. Investment (operat assets) is…

A: Residual income is the amount of extra earnings that an entity has, after paying of all the…

Q: The following data has been provided for a company’s most recent year of operations: Return on…

A: In non-public finance, residual earnings can talk over with an individual's discretionary earnings,…

Q: Fill in the blanks in the schedule below for two separate investment centers A and B. Note: Round…

A: Ratios make it easier to compare several businesses within the same sector or industry. Benchmarking…

Q: Canyon Tours showed the following components of working capital last year: Beginning of…

A: Working capital refers to the amount that a company needs to meet the operating expenses. Working…

Question

48. From the following data compute the duration of the operating cycle for
each of the two years and comment on increase or decrease.
Rs. thousands
year 1
year2
stocks :
raw material
20
27
work-in process
14
18
finished goods
21
24
purchases
96
135
cost of goods sold
140
180
sales
160
200
debtors
32
50
creditors
16
18
Assume 360 days per year for computational purpose.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Review Annual Profit Rate Given the following information compute the annual profit rate: Investment Duration (months) Balance Account 1000 250000 150000 12 24 6 Profit Distributable 30 23500 1500 Application Mudaraba The Unre tricted Investment Accounts (UIA) of an Islamic Bank are based on a Mudaraba agreements with a profit-sharing ratio of 40% (Mudarib) and 60% (Capital Provider). The Islamic bank invested the UIA balance of QR 2.500.000 million in an oil company for one year with the agreement to share the profit with the oil company using the following ratio 55% (Mudarib) and 45% (Capital Provider). At the end of the year the oil company earned QR 125.000 as profit. Find the income distributable to the UIA holders. Find the UIA holders annual profit rate. Suppose the market annual profit rate for the same type of Unrestricted Investment Accounts is 1.75 %. What would be the new profit-sharing ratio between the Islamic Bank and the Unrestricted Investment Accounts holders.
Du Pont Analysis TRP has total receiveables of $3,000, which represents 20 days sales. Total assets are $75,000. The operating profit margin is 5%. Find the firms ROA and its assets turnover ratio.
please step by step solution.
$616.96 Que What regular investment, made at the end of every three months and earning 10% compounded quarterly. would accumulate to $475,000 in 20 years? a $7,856.83 O b $17,616.21 Ос $3,492.86 ○ d $1,912.37 O e $7,916.67
please help with work this time
Using the following information, determine the net operating income NOI. Subject Property Number of apartments 15 Market rent per month. 1000 Vacancy and collection losses 10% of PGI Operating expenses 5% of EGI Capital expenditures 10% of EGI
Canyon Tours showed the following components of working capital last year: Beginning of Year $ 24,000 12,000 14,500 Accounts receivable Inventory Accounts payable a. What was the change in net working capital during the year? Note: A negative amount should be indicated by a minus sign. Change in net working capital End of Year $ 23,000 12,500 16,500 b. If sales were $36,000 and costs were $24,000, what was cash flow for the year? Ignore taxes. Cash flow