An analyst gathers the following data for a firm: Sales: $1, 850 Cost of Goods Sold: $501 Inventory: $124 Accounts Receivables: $188 Accounts Payables: $153 Based on this information, calculate the firm's Operating Cash Conversion Cycle.
Q: Calculate Operating Cash Flow (OCF) for the company using the following information. Note the…
A: Operating Cash FlowThe ability of a business enterprise to generate income from its core operations…
Q: You are evaluating the balance sheet for PattyCake's Corporation. From the balance sheet you found…
A: Given the following information: Cash and marketable securities = $280,000 Accounts receivable =…
Q: The following information pertains to Peak Heights Company: Income Statement for Current Year Sales…
A: Cash flows from operating activities is one of the important section of cash flow statement. It…
Q: Need to compute cash flows from operating activities for each case using the direct method. I need…
A: working notes: Cash received from customer's= $74,000+1,000=75,000 64,000+4,900=68,900…
Q: Use the financial statements supplied below for International Motor Corporation(IMC) to answer the…
A: CCC stands for Cash Conversion Cycle which is a metric of working capital that states how many days…
Q: The income statement for Angelonia reports net sales of $91,558 million and cost of goods sold of…
A: The direct method of cash flow analysis involves presenting all the cash inflows and outflows of a…
Q: The cost of merchandise sold during the year was $51,768. Merchandise inventories were $13,894 and…
A: Workings: Inventory sold for $ 51768. Beginning inventory $13894 Ending inventory $ 8414 Accounts…
Q: Classify each cash transaction between Operating (O), Investing (I), or Financing (F) activities;…
A: Cash flows statement is one of the financial statement that shows all cash inflows and cash outflows…
Q: The following selected account balances appeared on the financial statements of the Washington…
A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…
Q: The following comparative information is available for LIFO FIFO Sales revenue $87,000 $87,000 Cost…
A: Net Income -Revenues less costs, interest, and taxes equals net income (NI). NI is used in the…
Q: Computing operating activities cash flow—indirect method The accounting records of CD Sales, Inc.…
A: Cash from operating activities Particulars Amount Net profit 50, 000 Less : Dividend received…
Q: Create a statement of cash flow for the current year using Wright Co's income statement and balance…
A: Solution The cash flow statement is one part of the financial statement that provides aggregate data…
Q: Tabor Company has just prepared the following comparative annual financial statements for the…
A: Total Asset Turnover Ratio :— It is calculated by dividing net sales by average total assets.…
Q: The following is the balance sheet and income statement for Metro Eagle Outfitters, in condensed…
A: The objective of the question is to calculate the liquidity ratios for Metro Eagle for the years…
Q: La Sorpresa, S.A., a leading local company, knows that in order to know the rotations necessary to…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts…
A: Cash flow statement (CFS) refers to a financial statement which shows the flows of cash and cash…
Q: Capstone Turbine Corporation produces and sells turbine generators for such applications as charging…
A: (a)Compute monthly cash expenses:Monthly cash expenses = Negative cash flow from operations / total…
Q: Salus Mea Inc., is developing its annual financial statements at December 31, current year. The…
A: The cash flow statement is a reconciliation statement to trace the net income back to the cash…
Q: what were the cash collections from customers during the period?
A:
Q: The following information was taken from the 2021 financial statements of Crane Company:…
A: A cash flow statement indicates cash inflow and cash outflow information of a particular time…
Q: Using the direct method of reporting cash flows from operating activities, cash paid for merchandise…
A: Cost of merchandise purchased =cost of merchandise sold +Closing Merchandise inventories -…
Q: Swifty Ltd. had the following 2023 income statement data: Revenues $113,000 Expenses 1/1/23 In 2023,…
A: Lets understand the basics.Cash flow from operating activities is a part of cash flow statement.…
Q: Hampton Company reports the following information for its recent calendar year. Income Statement…
A: The cash created or utilised by a business's primary operating activities over a certain time period…
Q: The income statement for Electronic Wonders reports net sales of $91,748 million and cost of goods…
A: The direct method of cash flow analysis involves presenting all the cash inflows and outflows of a…
Q: Use the information below for clarkson corporation to calculate operating cash flow. sales.…
A: Given: Net income = $935,123 Depreciation =$1,020,100
Q: Metlock, Inc. had an increase in inventory of $108000. The cost of goods sold was $504000. There was…
A: Cash payments to suppliers is computed by adjusting increase or decrease in inventory and accounts…
Q: Assume a firm generates $2,200 in slaes and has a $300 increase in accounts recieveables during an…
A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…
Q: Use the following income statement and balance sheet information to put together a statement of cash…
A: The cash flow statement is one of the important financial statements of the business, which keeps…
Q: Determine the managerial balance sheet for the FY 2021.
A: Answer
Q: River Company began the accounting period with a $79,000 debit balance in its Accounts Receivable…
A: CASH FLOW STATEMENTCash flow statement provides additional information to user of financial…
Q: The following selected account balances appeared on the financial statements of Washington Company:…
A: Cash payments for merchandise are found as beginning accounts payable plus purchases minus ending…
Q: Please complete the statement of cashflows as required below: A comparative balance sheet…
A: Statement of Cash Flow - Statement of Cash flow Shows the movement of cash during the financial…
Q: Forten Company's current year income statement, comparative balance sheets, and additional…
A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…
Q: Kellogg's Company and General Mills compete in the consumer packaged goods (CPG) sector. Refer to…
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Prepare a complete statement of cash flows using the indirect method for the current year. Note:…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Computing Cash Payments to Suppliers. Lowe’s Companies, a retailer of home improvement products,…
A: Purchases = Cost of goods sold + Ending Inventory - Beginning Inventory Purchases = $31,729 + $8,209…
Q: Use SinCo's Income Statement and Balance Sheet to create a Statement of Cash Flows for the current…
A: Given in the question: Net Income during the year = 624 Depreciation Expense during the year = 540…
Q: The following selected data for ABC Corporation for the year ended December 31, 2020, is available…
A: The provided data suggests ABC Corporation generated positive cash flow from operations of $40,800.…
Q: Non-current liabilities: 10% loan notes Current liabilities: Bank overdraft Trade payables Taxation…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: The cost of goods sold during the year was $281200. Inventory increased by $9000 during the year and…
A: Cost of goods sold = $281200 Increase in Inventory = $9000 Accounts payable = $14100
Q: Dreamz Unlimited INC has accounts payable days of 30 , inventory days of 60 , and accounts…
A: Accounts payable days = 30 daysInventory days = 60 daysAccounts receivable days = 35 daysThe Cash…
Q: What is the cash conversion cycle for XYZ Company, based on the following information? Inventory:…
A: Cash conversion cycle refers to the time period a company takes in converting its inventory to cash.…
Q: The following selected account balances appeared on the financial statements of Washington Company:…
A: Cash payment for merchandise means the amount of money paid by the entity to the supplier during a…
Q: Consider the following balance sheet and income statement for Mmm Good Foods Incorporated (the…
A: The valuation of the company is done by mainly two methods that are net worth or net value of assets…
An analyst gathers the following data for a firm: Sales: $1, 850 Cost of Goods Sold: $501 Inventory: $124 Accounts Receivables: $188 Accounts Payables: $153 Based on this information, calculate the firm's Operating Cash Conversion Cycle.
Step by step
Solved in 3 steps
- The income statement for Electronic Wonders reports net sales of $91,758 million and cost of goods sold of $69,278 million. An examination of balance sheet amounts indicates accounts receivable increased $1,733 million, inventory increased $883 million, and accounts payable to suppliers decreased $1,967 million.Required:Using the direct method, calculate (1) cash received from customers and (2) cash paid to suppliers.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.The following items appeared on the financial statements of Washington Company. Line Item Description Amount Accounts receivable, January 1 $13,084 Accounts receivable, December 31 6,949 Accounts payable, January 1 5,909 Accounts payable, December 31 9,591 Inventory, January 1 8,120 Inventory, December 31 16,988 Sales 64,741 Cost of goods sold 32,521 Washington Company uses the direct method to report cash flows from (used for) operating activities. Assume that all accounts payable are owed to merchandise suppliers Cash received from customers during the year is
- 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 0The following information pertains to Peak Heights Company: Income Statement for Current Year Sales $ 85,300 Expenses Cost of goods $ sold 51,675 Depreciation 8,100 expense Salaries 12,000 71,775 expense Net income $ 13,525 Partial Balance Prior Sheet Current year year Accounts $ $ 9,900 receivable 14,400 Inventory 13,700 8,300 Salaries payable 1,550 850 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. Note: List cash outflows as negative amounts. PEAK HEIGHTS COMPANY Statement of Cash Flows (Partial) Cash flows from operating activities: Accounts receivable increaseUse the followIng Income statement and balare cheet Informatlon to put togethe er a statement of cash nows. (Eoter oegatve amouNTtS Lsng eibhera negaative slyn pENERINTD ChEe 7.017 Sales $1,237,000 Statement ot Cash Flows 2017 Cost of goods sold $684,000 Gross proft $553,000 Gen'1& admin expense $156,000 Selling & mkt expense $135,000 Depreclation $24,000 Operating Income $238,000 Interest $141,000 Income before taxes $97,000 Income taxes (27%) $26,190 Net Income 570,810 Dividends pald $25,000 Assets 2017 2016 Cash $14,590 Accounts recelvable $124,000 $113,000 Inventory $201,000 $218,000 Total current assets $345.590 Gross plant and equipmnent $700,000 $475.000 Less: accum. depreciation $313,000 $289,000 Net plant and equipment $387,000 $185.000 Total assets 5735,000 $531,590 Lablitles Accounts payable $118,000 $105,000 Notes payable $26,000 $26,000 Total current llablitles 5144,000 $131.000 Long-term debt $248,000 5154,000 Total llabilitles $392,000 3285,000 Common stock ($0.01 par)…
- 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…PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS 1. La Sorpresa de Ayer, 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....................... 65%Average customer balance............................. $ 372,621.40Cost of sales ratio...................... 65%Average inventory balance...................... $ 420,393.37Average supplier balance................... $ 288,004.21Beginning inventory................................................ $ 358,554.55 The company spends about $12.350 million in operating cycle investments. With this data it is necessary to calculate: 1) The operating cycle.2) The cash…Create a statement of cash flow for the current year using Wright Co's income statement and balance sheet. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Income Statement: Current Year Revenue 4,742.00 Cost of Goods Sold 2,323.58 Gross Margin 2,418.42 SG&A 524.00 EBITDA 1,894.42 Depreciation Expense 504.00 EBIT 1,390.42 Interest Expense 164.20 EBT 1,226 Taxes 429.18 Net Income 797.04 Dividends 410 Addition to Retained Earnings 387.04 Balance Sheet: Assets Prior Year Current Year Cash 800 ???? Accounts Receivables 400 452.00 Inventory 300 358.00 Total Current Assets 1,500 ???? Net Fixed Assets 5,000 5,211.00 Total Asset 6,500 ???? Liabilities and Equity Prior Year Current Year Accounts Payable 300 320.00 Notes Payable 1,000 919.00 Total Current Liabilities 1,300 1,239.00 Long-Term Debt 2,000 2,365.00 Total Liabilities 3,300 ???? Common Stock and Paid-in Capital 2,200 2,200…
- russell co reports sales revenue of 30000 and interest revenue of 5000. it comparative balance sheet show that accounts recievable decrease 4000 and interest recievable increased 1000 compute cash provided by operating activities using the direct methodPrepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 178,000 $ 122,400 Accounts receivable 104,000 85,000 Inventory 622,000 540,000 Total current assets 904,000 747,400 Equipment 372,700 313,000 Accumulated depreciation—Equipment (165,000) (111,000) Total assets $ 1,111,700 $ 949,400 Liabilities and Equity…The following items appeared on the financial statements of Washington Company. Line Item Description Amount Accounts receivable, January 1 $13,395 Accounts receivable, December 31 6,901 Accounts payable, January 1 5,645 Accounts payable, December 31 8,721 Inventory, January 1 6,686 Inventory, December 31 16,260 Sales 73,071 Cost of goods sold 34,443 Washington Company uses the direct method to report cash flows from (used for) operating activities. Assume that all accounts payable are owed to merchandise suppliers. Cash payments for merchandise were