AR company has the following financial statement information:ItemInventoryAccounts receivableAccounts payableCredit salesCost of goods sold(b)(c)Beginning($)7800.00Assume that there are 365 days yearly, answer the following questions.(a)Calculate the operating cycle.Calculate the cash cycle.3500.007500.0090000.0056000.00Ending ($)10200.004500.007900.00Judge whether the following statement is true and explain your answer:"It is possible to have a negative cash cycle".

Here, Particulars Values Opening inventory $ 7,800.00 Ending inventory $…

Answered: AR company has the following financial…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Number 3
Bandy’s Barbeque recorded the following financial results: Fiscal year 2020 Fiscal year 2019 Cash $ 1,200 $ 900 Accounts receivable 6,140 5,890 Inventory 7,850 7,770 Accounts payable 9,490 8,750 Sales 229,650 215,871 Cost of goods sold $ 133,200 $ 120,888 What was the company’s inventory period?
The following balance sheet information was provided by Western Company: Assets Cash Accounts receivable Inventory Multiple Choice O 110.6 days Assuming Year 2 net credit sales totaled $132,000, what was the company's average days to collect receivables? Note: Use 365 days in a year. Do not round your intermediate calculations. 52.5 days 55.3 days Year 2 58.1 days $3,200 $21,000 $36,000 Year 1 $2,700 $19,000 $42,000
1
Please show proper steps only by formula not excel. Both parts
Consider the following financial statement information: Item Beginning Year Ending Inventory € 9.780 € 11.380 € 4.108 € 4.938 € 7.636 € 7.927 Accounts Receivable Accounts Payable Credit Sales Cost of Goods Sold € 89.804 € 56.384 Calculate the operating and cash cycles. How do you interpret your answer?
2. ABC Company left the sales journal open after year end for two extra days and included the January 1 & 2 sales in the December 31 totals. The company uses perpetual inventory system. What effect would this have on the 2018 financial statements? Assume that the client made the following actual credit sales and received cash receipts as follows after 12/29/20: Cash Receipts (Besixakles Only) 7,500.00 SALES COGS 12/30/2020 11,250.00 6,000.00 12/31/2020 7,750.00 3,500.00 6,750.00 1/1/2021 6,000.00 2,000.00 1/2/2021 5,700.00 1,500.00 4,500.00 3,700.00 ABC Company has the following balances at 12/29/20: a. Cash $115,000 b. Accounts Receivable $55,000 c. Sales $150,000 d. Cost of Goods Sold $61,000 e. Inventory $75,000 Determine the overstatements and understatements that would result from the following situations. Assume that each situation is independent of one another. In the case of a perpetual inventory, assume that the year-end inventory count did not identify and correct the…
Ayayai Company provides the following information for the month ended October 31, 2020: sales on credit $ 280,100, cash sales $ 100,100, sales discounts $ 5,100, and sales returns and allowances $ 10,100. Prepare the sales section of the income statement based on this information. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) AYAYAI COMPANY Income Statement (Partial) 24 %24
Vaughn Company reported the following balances at June 30, 2022:Sales RevenueSales Returns andAllowancesSales DiscountsCost of Goods Sold$164007002907500 Net sales for the month is $ 16400. $7910. $15700. $15410.
A manufacturer reports the data below. Accounts payable Accounts receivable Inventory Net sales $ 9,649 18,474 5,455 233,607 Cost of goods sold 138,200 (1) Compute the number of days in the cash conversion cycle. (2) Is the company more efficient at managing cash than its competitor who has a cash conversion cycle of 14 days? 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. Note: Use 365 days in a year. Round calculations to the nearest whole day. Cash conversion cycle days
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