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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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 sales RM 650,000 Credit sales RM 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.

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