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…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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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
Please provide correct answer accounting....
Calculate Cash Conversion Cycle and Operating Cycle length. Data: Accounts Payable average amount: 200 Eur/day Total Purchases: 3200 Eur/year Row Material Inventory average amount: 220 Eur/day Purchased row materials: 1000 Eur/year Work in Progress inventory average amount: 80 Eur/day Costs of goods manufactured: 2000 Eur/year Finished goods inventory average amount: 2Eur/day Costs of goods sold: 200 Eur/year Accounts receivables average amount: 50 Eur/day Sales: 800 Eur/per year
BMC Co. has an average A/R balance of P1,250,000, average inventory balance of P1,750,000, and average accounts payable balance of P800,000. Its annual sales are P12,000,000 and its cost of goods sold represents 80% of annual sales. Assume there are 365 days in a year. What is BMC Co.’s cash conversion cycle? A. 53.23 days B. 60.83 days C. 72.28 days D. 84.15 days E. 100.55 days
CCC Corp. has annual turnovers of inventory, receivables, and payables of 12,18, 8 respectively. Industry average for average ages are 35 days, 25 days, and 40 days for inventories, receivables and payables? What is the difference of the cash conversion cycle of CCC compared to the industry? Use 360 days.
ML has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days 34 days 46 days 31 days 38 days O 42 days
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BMC Co. has an average A/R balance of P1,250,000, average inventory balance of P1,750,000, and average accounts payable balance of P800,000. Its annual sales are P12,000,000 and its cost of goods sold represents 80% of annual sales. Assume there are 365 days in a year. What is BMC Co.’s cash conversion cycle?
mekmek Corporation uses the Baumol Cash Model to determine its optimal cash balance. For the coming year, the expected cash disbursement total to P432,000. The interest rate on marketable securities is P8 per transaction. Using 5% carrying cost rate, what is the optimal cash balance of the company? A. 1,175.76 B. 5,878.78 C. 11,757.55 D. 142,000
Calculate Cash Conversion Cycle (CCC) from the following; Average collection period 30 Average payment period - 20 Average inventory -6,000 COGS per day - 150 a. 70 days b. 90 days c. 30 days d. 50 days

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