A firm has an operating cycle of 120 days, an average collection period of 40 days, and an average payment period of 30 days. The firm’s average age of inventory is   A firm has a cash conversion cycle of 80 days, an average collection period of 25 days, and an average age of inventory of 70 days. Its operating cycle is days

Q: Captain Kurt's Enterprises has a receivables turnover rate of 12.8, a payables turnover rate of…

A: The operating cycle is the average time it takes a company to convert its inventory into cash. It…

Q: 1. Bowa Construction's days sales outstanding is 50 days (on a 365-day basis). The company's…

A: "Since you have asked multiple questions, we will solve the first question for you". If you want any…

Q: Provide Answer

A: The operating cycle is a measure of the time it takes a company to convert its cash into inventory,…

Q: You prefer to extend credit on the assumption that you will be paid in full within 10 days of the…

A: Variables in the question:Average inventory=$ 720,000Cash sales (no credit sales)= $4,400,000…

Q: A firm with sales of $22,000,000 has inventory of $800,000. The firm has cash sales (all sales are…

A: Answer    Inventory  storage period in days =            Inventory  / cost of goods sold  × 365…

Q: If a firm has an inventory turnover of 15, the firm

A: Inventory turnover is an important financial ratio. It is used to assess the efficiency with which a…

Q: A firm has actual sales in November of $1,363 and projected sales in December and January of $2,928…

A: Credit sales refer to the sales in which the customer is given some time to pay for the goods…

Q: The Cannon Ball has projected its first quarter sales at $11,200, second quarter sales at $10,900,…

A: Calculation of cash surplus (deficit) at the end of the first quarter: Answer: Cash deficit at the…

Q: Limitless Styles has a 45 day accounts payable period. The firm has expected sales of $900, $1,200,…

A: Account payable period = 45 days Cost of goods sold = 70% of next quarter sales sales of quarter 3rd…

Q: Nock Inc. has a Days Inventory Outstanding of 13, an Accounts Receivable $128, an Average Sales per…

A: Cash Conversion Cycle is a method used by the management and it can be calculated as follows, =Days…

Q: Yeti Televisions has the following information: Inventory Outstanding = 15 Days Accounts Receivable…

A: Cash Conversion Cycle: = Inventory outstanding in days + outstanding sales in days - outstanding…

Q: ABC Corp has an average inventory period (production process time + time before sale) of 36 days.…

A: Short term operating cycle refers to the time required to sell the inventory and realize cash from…

Q: For Nibong Prawn Paste Enterprise (NPPE), the average age of accounts receivable (AAR) is 60 days,…

A: a. Cash conversion cycle = Inventory days + Account receivable days  - Account payable days Cash…

Q: Grab Co. has a normal operating cycle of 60 days. The average age of inventory is 30 days. The…

A: Normal Operating cycle = Age of inventory + Age of Debtors Also, 360/ age of debtors = debtors…

Q: If the average age of the inventory is 90 days, the average age of accounts payable is 65 days, and…

A: The cash conversion cycle that indicates to conversion investment in inventory and other resources…

Q: ou prefer to extend credit on the assumption that you will be paid in full within 42 days of the…

A: Solution:- As given in the question, Firm X has an average inventory of $640,000 and sales of…

Q: On average, it will take you sell to the firm on credit. days to receive the payments, therefore,…

A: The operating cycle of a firm is time period from the purchase of raw materials till the receipt of…

Q: What is the inventory period for a firm with an annual cost of goods sold of P5 million, P1.2…

A: The inventory turnover ratio is a financial ratio that defines the number of times within which…

Q: Which one of the following statements is correct if a firm has a receivables turnover of 10? It…

A: In this question, we are required to determine the correct statement related to receivables turnover…

Q: 22) A firm has the following data: Inventory conversion period = 75 days Average collection period…

A: Cash conversion cycle represent the number of days taken by the company to convert its goods into…

Q: Captain Kurt's Enterprises has a receivables turnover rate of 12.8, a payables turnover rate of…

A: Average receivables in days  = 365/Inventory Turnover Ratio = 365 / 12.8 =28.515625 = 28.52

Q: A firm has annual sales of $100 million, $20 million of inventory, and $30 million of accounts…

A: The inventory turnover ratio is the number of times a company has sold and replenished its inventory…

Q: Ait Limited has annual credit sales of Ghc5 million and cost of sales of GHC1.8 million. The…

A: Overdraft could be a credit extension from a bank to its bank account holders. The credit is…

Q: What is the receivales turnover and what is the average collection period (days sales outstanding) ?

A: Information Provided: Credit sales = $10,640,000 Receivables = $1,520,000

Q: If a company has a cash cycle of 30 days and an operating cycle of 92 days, what is its average…

A: The average payment period is the time taken by the firm to pay off its accounts payables. Accounts…

Q: A firm has a cash conversion cycle of 80 days and average payment period of 60 days. The firm's…

A: Given: Cash conversion cycle is 80 days Average payment period is 60 days

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: Negus Enterprises has an inventory conversion period of 51 days, an average collection period of 48…

A: Here, Inventory Conversion Period (DIO) is 51 days Average Collection Period (DSO) is 48 days…

Q: On average your firm sells $33,100 of items on credit each day. Your average inventory period is 35…

A: Answer:- Operating cycle meaning:- The company's operational efficiency is gauged by the operating…

Q: Assume a firm has a cash cycle of 67 days and an operating cycle of 104 days. What is its average…

A: The operating cycle is the time period from purchasing inventory to receiving cash from customers…

Q: Alex has an inventory turnover of 15 and an   accounts receivable turnover of 9. The accounts…

A: Cash cycle is the time period in which cash is again received by business organisation. It includes…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.