Can you help me with this financial accounting question? A manufacturing company has the following financial data:•Credit sales = $4,500,000••••••Cost of goods sold = $2,700,000Average accounts receivable = $750,000Average inventory = $600,000Average accounts payable = $450,000Material costs represent 60% of the cost of goods soldCredit sales account for 75% of total salesCalculate the cash operating cycle for thiscompany.

Step 1: Define Cash Operating CycleThe Cash Operating Cycle (also called the Cash Conversion Cycle)…

Answered: A manufacturing company has the…

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

See similar textbooks

Similar questions

Direct Furnishings Inc. has the following data:Annual sales $10,000,000Cost of goods sold 6,000,000Inventory 2,547,945Accounts receivable 1,643,836Accounts payable 1,200,000What is the firm’s cash conversion cycle?
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
A firm has $5 million of inventory and $2 million of accounts receivable. Its average daily sales are $100,000 and cost of goods sold (COGS) is $80,000. The company’s payables deferral period (accounts payable divided by daily purchases) is 32 days. What is its cash conversion cycle? a. 25.5 b. 26.0 c. 43.6 d. 50.5
SUBJECT -GENERAL ACCOUNT
Need help with this question solution general accounting
Financial Accounting
Skylark Industries has P6,000,000 in inventory and P3,000,000 in accounts receivable. The company has an average daily sales of P100,000. The company’s payables deferral period is 30 days. Compute for the cash conversion cycle. * A.100 days B. 60 days C. 50 days D. 40 days E. 33 days
Your boss asks you to compute the company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $126,300, accounts receivable were $97,900, and accounts payable were at $115,100. You also see that the company had sales of $324,000 and that cost of goods sold was $282,000. What is your firm's cash conversion cycle? Round to the nearest day.
Lowell Inc. has $5 million in inventory, $2 million in accounts receivable, and 1.5 million in accounts payables. Its annual sales are $36.5 million and annual cost of goods sold (purcahses) is $18.25 million. What is the length of the company's cash conversion cyle? 60 days 90 days 80 days 70 days
Cost accounting
Abc
BSW & Company has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 75 days Average collection period = 32 days Payables deferral period = 55 days 43 days 62 days 23 days 20 days 52 days

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS