What was the length of its operating cycle on these general accounting question? AlphaTech Corporation had sales (all on credit) of $50 millionand a gross profit margin of 25% last year. If AlphaTech'sinventory averaged $4.5 million, and its accounts receivablewere $6.2 million, what was the length of its operating cycle?(Assume a 365-day year.)

Step 1: Define Operating CycleThe operating cycle measures the time it takes for a business to…

Answered: AlphaTech Corporation had sales (all on…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

See similar textbooks

Similar questions

Your company had net sales of $100,000 over the past year. One quarter of the sales were credit sales. During that time, average receivables were $5,000. The accounts receivable balance at the end of the year was $5,000. What was the average collection period? What is the average age of receivables (same answer!)? (Assume a 360-day year) O 18 days O 27 days O 36 days O 72 days O 60 days
The average total assets of Party Favors, Inc. amount to $110,000. The firm's total receivables are $7,000, representing 25 days' sales. The firm's profit margin is 8 percent. Use a 365-day year and round your answers to two decimals. A) What is Party Favor's asset turnover ratio? B) What is its ROA?
Lalit Lumber Company has sales of $13 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $3.45 million. Assume 365 days in the year for your calculations. 1. What is Lalit's DSO? 2. What would DSO be if all customers paid on time?
Cochrane Associate's net sales last year were $525 million. If sales grow at 7.5% per year, how large (in millions) will they be 8 years later? $845.03 $889.51 $936.33 $983.14 $1,032.30
Lalit Lumber Company has sales of $13 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $3.45 million. Assume 365 days in the year for your calculations. 1. What is Lalit's DSO? 2. What would DSO be if all customers paid on time? General Account
??!!
Leyton Lumber Company has sales of $11 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $1.43 million. Assume 365 days in year for your calculations. What is Leyton's DSO? Round your answer to two decimal places. days What would DSO be if all customers paid on time? Do not round intermediate calculations. Round your answer to two decimal places. days How much capital would be released if Leyton could take actions that led to on-time payments? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest cent.$
Lalit Lumber Company has sales of $13 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $3.45 million. Assume 365 days in the year for your calculations. 1. What is Lalit's DSO? 2. What would DSO be if all customers paid on time? Right Answer
A company has profits of $38,982 this year and expects profits to decrease by $1,728 dollars per year over the next 12 years. If the profits will be continuously invested in an account bearing 6.2% APR compounded continuously, what is the 12-year present value of this income stream?
Suppose that Gyp Sum Industries currently has the balance sheet shown. below, and that sales for the year just ended were $9.5 million. The firm also has a profit margin of 25 percent and a retention ratio of 30 percent, and expects sales of $7.5 million next year.
Sales for Hanebury Corporation’s just-ended year were $12 million. Sales were $6 million 5 years earlier. a. At what rate did sales grow? b. Suppose someone calculated the sales growth for Hanebury in part a as follows: “Sales doubled in 5 years. This represents a growth of 100% in 5 years; dividing 100% by 5 results in an estimated growth rate of 20% per year.” Explain what is wrong with this calculation.
Finlay Corporation had sales this year of $3,270 million, and sales are expected to grow by 20 percent next year. Next year the company expects cost of goods sold to be 60 percent of sales, selling expenses to be $40 million per month, depreciation to be $10 million per month, and interest expense to be $24 million per month. Taxes are computed at 21 percent. What is Finlay's expected net income next year?

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

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

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

AlphaTech Corporation had sales (all on credit) of $50 million and a gross profit margin of 25% last year. If AlphaTech's inventory averaged $4.5 million, and its accounts receivable were $6.2 million, what was the length of its operating cycle? (Assume a 365-day year.)