ABC Corporation has average balances of P1,800,000 in inventory, P2,000,000 in accounts receivable, and P120,000 in accounts payables. Its average daily sales are P100,000. Its average daily purchases are P60,000. No changes in inventory and accounts payable levels are expected. Find the following: 1. Days inventory outstanding 2. Days receivable outstanding 3. Days payable outstanding 4. Cash Conversion Cycle in days 5. Does ABC have an acceptable cash conversion cycle?
ABC Corporation has average balances of P1,800,000 in inventory, P2,000,000 in accounts receivable, and P120,000 in accounts payables. Its average daily sales are P100,000. Its average daily purchases are P60,000. No changes in inventory and accounts payable levels are expected. Find the following: 1. Days inventory outstanding 2. Days receivable outstanding 3. Days payable outstanding 4. Cash Conversion Cycle in days 5. Does ABC have an acceptable cash conversion cycle?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Corporation has average balances of P1,800,000 in inventory, P2,000,000 in
1. Days inventory outstanding
2. Days receivable outstanding
3. Days payable outstanding
4. Cash Conversion Cycle in days
5. Does ABC have an acceptable cash conversion cycle?
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