Need answer the accounting question A company has the followingdebts sales $3,000,000costing sales = $1,500,000average receivables = $500,000average inventory = $300,000average payable = $200,000The material cost represent 50% of the cost of sales. Credit salesaccount for 80% of the total sales. Calculate the cash operating cycle

Step 1:- Introduction to the Cash Operating CycleThe cash conversion cycle is the total time it…

Answered: A company has the following debts sales…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 3MC

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Heritage Farms has sales of $1.62 million with costs of goods sold equal to 78 percent of sales. The average inventory is $369,000, accounts payable average $438,000, and receivables average $147,000. How long is the cash conversion cycle?
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Provided the following information: Sales =$1,440,000, Cost of Goods Sold= $1,100,000, Inventory=$200,000, Receivables=$160,000, Payables=S100,000 and there are 365 days in a year. What is the cash conversion cycle for the firm? a. 113.55 Days b. 77.05 Days c. 150.05 Days d. 73 Days e. None of the above
Shulman Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle? Annual sales = $45,000 Annual cost of goods sold = $30,000 Inventory = $4,500 Accounts receivable = $1,800 Accounts payable = $2,500 a. 28 days b. 43 days c. 39 days d. 35 days e. 32 days
Please provide correct answer accounting....
What is the cash conversion cycle? General accounting
You are provided the following working capital information for the Ridge Company: Account Inventory $ $12,890 Accounts receivable 12,800 Accounts payable 12,670 Net sales $124,589 99,630 Cost of goods sold What is the cash conversion cycle for Ridge Company? a. 38.3 days b. 129.9 days c. 83.5 days d. 46.4 days
Which is the correct option?
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Provide correct cash conversion cycle of this financial accounting question
Shulman Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle? (Show your work) Annual sales = $45,000 Annual cost of goods sold = $30,000 Inventory = $4,500 Accounts receivable = $1,800 Accounts payable = $2,500
Your boss asks you to compute your company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $24,800, accounts receivable averaged $18,700, and accounts payable averaged $16,100. You also see that the company had sales of $138,000 and that cost of goods sold was $110,400. Calculate firm's cash conversion cycle. (Use 365 days for calculation. Round intermediate calculations and final answer to 1 decimal place, e.g. 15.1.)

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