A manufacturer reports the data below. Accounts payable Accounts receivable Inventory Net sales Cost of goods sold Current Year $ 7,203 25,285 9,504 181,000 91,000 E TI Prior Year $ 11,148 17,506 8,855 133,000 120,000 (1) Compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the number of days in the cash conversion cycle for each year. (Use 365 days in a year. Round calculations to the nearest whole day.) Current year Prior year Cash conversion cycle days days Required 1 Required 2 >

A manufacturer reports the data below. Accounts payable Accounts receivable Inventory Net sales Cost of goods sold Current Year $ 7,203 25,285 9,504 181,000 91,000 E TI Prior Year $ 11,148 17,506 8,855 133,000 120,000 (1) Compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the number of days in the cash conversion cycle for each year. (Use 365 days in a year. Round calculations to the nearest whole day.) Current year Prior year Cash conversion cycle days days Required 1 Required 2 >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(1) Use the information below to compute the days in the cash conversion cycle for each company. (2) Which company is more effective at managing cash based on this measure? Days' sales in accounts receivable Days' sales in inventory Days' payable outstanding Required 1 Required 2 Sparta Company 36 22 29 Complete this question by entering your answers in the tabs below. Cash conversion cycle Athens Company 49 26 34 Use the information below to compute the number of days in the cash conversion cycle for each company. Sparta Athens Company Company
CC1) La Sorpresa, S.A., a leading local company, knows that in order to know the rotations necessary to quantify its cash cycle, it is essential to apply some financial ratios. So how often it pays its suppliers, how often it rotates its inventories, and how often it charges its customers, will have to be calculated with the following data: Total sales of the company..........................$4'586,109.47Proportion of credit sales....................... 60%Average customer balance............................. $ 343,958.21Cost of sales ratio...................... 55%Average inventory balance...................... $ 420,393.37Average supplier balance................... $ 288,004.21Beginning Inventory................................................ $ 385,554.55 The company spends about $8.125 million in operating cycle investments. With this data it is necessary to calculate: 1) The operating cycle.2) The cash conversion cycle.3) The cash turnover.4) The minimum cash balance.
Compute Cash Conversion Cycle for Competing Firms Kellogg's Company and General Mills compete in the consumer packaged goods (CPG) sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions Total revenue Cost of sales and services Average accounts receivable Average inventory Average accounts payable K GIS $14,597.0 $16,790.0 9,871.0 10,312.9 1,382.0 2,607.0 2,324.0 1,562.9 2,348.0 3,483.0 Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. a. Compute the following measures for both companies. 1. Days sales outstanding (DSO) Company K GIS DSO 0 0 2. Days inventory outstanding (DIO) Company K GIS DIO 0 0 3. Days payable outstanding (DPO) Company K GIS DPO 0 0 4. Cash conversion cycle (CCC) Company K GIS CCC 0 0
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What is the Total Asset Turnover Ratio for a company with $120,000 in annual sales, beginning Assets of $250,000 and ending Assets of $200,000? .48 1.34 .26 .53 please give the correct answswer but only one is right.e xplain the correct naswer The efficiency ratio that shows how efficiently a company uses its cash to generate revenue is: Accounts Receivable Turnover Ratio. Total Asset Receivable Turnover Ratio. Cash Turnover Ratio. Inventory Turnover Ratio. please give the correct answswer but only one is right.e xplain the correct naswer
Compute Cash Conversion Cycle for Competing Firms Kellogg’s Company and General Mills compete in the consumer packaged goods (CPG) sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions K GIS Total revenue $14,575.0 $16,768.0 Cost of sales and services 9,849.0 10,312.9 Average accounts receivable 1,382.0 2,585.0 Average inventory 2,302.0 1,562.9 Average accounts payable 2,348.0 3,461.0 Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. a. Compute the following measures for both companies. 1. Days sales outstanding (DSO) Company DSO K Answer GIS Answer 2. Days inventory outstanding (DIO) Company DIO K Answer GIS Answer 3. Days payable outstanding (DPO) Company DPO K Answer GIS Answer 4. Cash conversion cycle (CCC) Company…
1.Based on the sales forecast, the finance manager estimates the receipt of cash based on cash and ________. Group of answer choices accounts receivables inventory sales credit sales net income
E47.