give me general accounting question A company calculates that its operating cycle last year was 72 days.The company had $420,000 in accounts receivable and sales of$3.65 million.How many days does it take from the time raw materials arereceived until the finished products are sold?

Step 1: Definition of Operating Cycle and Inventory Conversion PeriodThe operating cycle is the…

Answered: A company calculates that its operating…

Principles of Accounting Volume 2

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Chapter12: Balanced Scorecard And Other Performance Measures

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Problem 5EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. A recent accounting statement shows that the inventory investment for raw materials is $4,076, 100, for work-in-process is $6,888,000, and for finished goods is $2,994,000. This year's cost of goods sold will be about $30,108,000. Assume that there are 52 business weeks per year. a. Express total inventory as weeks of supply. The weeks of supply is weeks. (Enter your response rounded to one decimal place.) 27 **
Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. A recent accounting statement shows that the inventory investment for raw materials is $3,672,800, for work-in-process is $6,978,000, and for finished goods is $2,675,000. This year's cost of goods sold will be about $24,700,000. Assume that there are 52 business weeks per year. a. Express total inventory as weeks of supply. The weeks of supply is 28.05 weeks. (Enter your response rounded to one decimal place.) b. Express total inventory as inventory turns. The inventory turnover is turns per year. (Enter your response rounded to one decimal place.)
Can someone help me figure out this problem ? Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers. Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year? A. 90 days and 4.06 times B. 80 days and 4.06 times C. 70 days and 3.06 times D. 90 days and 3.06 times
Show the solution in good accounting form
A CARDBOARD BOX FACTORY pays its suppliers 40 days after making the purchase and receiving the goods. The average collection period is 45 days, i.e. its customers settle their debt with the company in that time; and the average inventory age is based on the inventory turnover which is 10 times a year. The company spends about $1.23 million in operating cycle investments. With this data we need to calculate: The operating cycle.The cash conversion cycle.The cash turnover.The minimum cash balance.You plan to make modifications to your policies so that you can decrease your PPC by 10 days, and decrease your EPI by 2 times (before converting it to days). Negotiations with your supplier have been unsuccessful and the payment term has been reduced by 10 days. With these data you have to calculate: Re-calculate the Operating Cycle, the SCC, RC and SMC introducing the proposed changes.Calculate the opportunity cost that the changes will cause, if the company's interest rate is 8%.
What is the number of workdays in an order cycle?
Please answer the general accounting question
What is the financial advantage of spending the additional money?
A firm uses 2,400 units of a product per year on a continuous basis. The product carrying costs are 60 per year and ordering costs are 252.05 per order. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. (a) Calculate the economic order quantity. (b) Calculate the total cost per year to order and carry this item (c) If it increases its order quantity by 58 units it will get a discount. i). Calculate the total cost at new level ii). How much is the discount that the supplier will offer to result in a net benefit to the company
A firm sells 2,800 units of an item each year. The carrying cost per unit is $3.26 and the fixed costs per order are $74. What is the economic order quantity? (Please round units to the nearest whole number)
Average raw material in stock is for one month. Average material in work in progress is for half month. Credit allowed by suppliers is one month. Debtors are allowed credit of one month. Average time lag in payment of wages is 1 month. Average time lag in payment of overheads is 1 month, 25 percent of the sales are on credit basis. Cash balance is expected to be Rs. 1,00,000. Finished goods lie in the warehouse for one month. Production is carried on evenly throughout the year and wages and overhead accrue similarly. Debtors are to be valued at cost of sales. Prepare a statement of working capital needed to finance a level of activity of 50,000 units of output. The cost sheet of PQR Ltd is given below. Particulars Cost per unit Rs. Raw material 40 Direct labour 20 Overhead 30 Total cost 90 Profit 10 Selling price 100
Balcom Enterprises is planning to introduce a new product that will sell for $120 a unit. Manufacturing cost estimates for 28,000 units for the first year of production are: Direct materials $1,372,000. Direct labor $1,008,000 (based on $18 per hour × 56,000 hours). Although overhead has not be estimated for the new product, monthly data for Balcom's total production for the last two years has been analyzed using simple linear regression. The analysis results are as follows: Dependent variable Factory overhead costs Independent variable Direct labor hours Intercept $ 136,000 Coefficient on independent variable $ 5.00 Coefficient of correlation 0.959 R2 0.846 Based on this information, how much is the variable manufacturing cost per unit, using the variable overhead estimated by the regression (assuming that direct materials and direct labor are variable costs)? Multiple Choice $72 $92 $95 $77

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A company calculates that its operating cycle last year was 72 days. The company had $420,000 in accounts receivable and sales of $3.65 million. How many days does it take from the time raw materials are received until the finished products are sold?