A) Cost of goods sold is $2,500,000 and inventory is $600,000. Calculate the days on-hand. B) Sales on account are $6,000,000, and accounts receivable are $2,000,000. Calculate the days outstanding. C) Cost of goods sold is $2,500,000, and accounts payable are $450,000. Compute the days in accounts payable. D) Using the information above, compute the cash conversion cycle.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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A) Cost of goods sold is $2,500,000 and inventory is $600,000.
Calculate the days on-hand.
B) Sales on account are $6,000,000, and accounts receivable are
$2,000,000. Calculate the days outstanding.
C) Cost of goods sold is $2,500,000, and accounts payable are
$450,000. Compute the days in accounts payable.
D) Using the information above, compute the cash conversion cycle.
Transcribed Image Text:A) Cost of goods sold is $2,500,000 and inventory is $600,000. Calculate the days on-hand. B) Sales on account are $6,000,000, and accounts receivable are $2,000,000. Calculate the days outstanding. C) Cost of goods sold is $2,500,000, and accounts payable are $450,000. Compute the days in accounts payable. D) Using the information above, compute the cash conversion cycle.
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