As an assistant financial manager for Taring Jitu Sdn Bhd, you are required to measure the firm's cash conversion cycle, operating cycle, production cycle, collection cycle, and payment cycle on one of your manufacturing products. The Board of Director will rely on your result to help them to make a decision. Below is the necessary information for the most recent fiscal year prepared by your accountant and puts together into table: Cash salesRM 650, 000 Credit salesRM 970, 000 Total sales RM 1,620, 000 Cost of goods soldRM 1,010,000 Ending Balance Beginning Balance Accounts receivable RM 52,000 RM 48, 000 Inventory RM22, 500 RM 18, 800 Accounts payable RM21, 000 RM 17,100 By using above data, measure the cash conversion cycle.
As an assistant financial manager for Taring Jitu Sdn Bhd, you are required to measure the firm's cash conversion cycle, operating cycle, production cycle, collection cycle, and payment cycle on one of your manufacturing products. The Board of Director will rely on your result to help them to make a decision. Below is the necessary information for the most recent fiscal year prepared by your accountant and puts together into table: Cash salesRM 650, 000 Credit salesRM 970, 000 Total sales RM 1,620, 000 Cost of goods soldRM 1,010,000 Ending Balance Beginning Balance Accounts receivable RM 52,000 RM 48, 000 Inventory RM22, 500 RM 18, 800 Accounts payable RM21, 000 RM 17,100 By using above data, measure the cash conversion cycle.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter1: Introduction To Cost Management
Section: Chapter Questions
Problem 1E: Classify each of the following actions as either being associated with the financial accounting...
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