Based on the following financial statement information, what is the cash cycle? Interpret. Item Beginning Ending Inventory 15,000 25.000 Accounts recelvable 14.500 10,000 Accounts payable 15.400 12,000 Credit sales RO 120.000 Cost of goods sald (COCS) 50% of credit sales

Based on the following financial statement information, what is the cash cycle? Interpret. Item Beginning Ending Inventory 15,000 25.000 Accounts recelvable 14.500 10,000 Accounts payable 15.400 12,000 Credit sales RO 120.000 Cost of goods sald (COCS) 50% of credit sales

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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Question

Based on the following financial statement information, what is the cash cycle? Interpret.
Item
Beginning Ending
Inventory
15,000
25.000
Accounts recelvable
14.500
10,000
Accounts payable
15.400
12,000
Credit sales
RO 120.000
Cost of goods sald (COCS)
50% of credit sales

Expert Solution

Step 1

$c a s h c o v e r s i o n d a y s = d s o + d i o - d p o = \frac{365 \times A V G A R}{S A L E S} + \frac{365 \times A V G I N V E N T O R Y}{C O G S} - \frac{365 \times A V G A P}{S A L E S}$

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Similar questions

1. a. The quick ratio is 0.09, cash is $10,000 and accounts receivable are $25,000. Accounts payable are $40,000, and accrued payroll is $15,000. What is the amount in the inventory account?
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10 A trader provided the following information: Payables: opening balance = $4,000; closing balance = $5,000. Payments made = $20,000 Receivables: opening balance = $7,000; closing balance = $9,000. All sales are on credit. Inventory: opening balance = $5,500; closing balance = $2,500. Gross profit margin = 25% How much cash has been collected from the customers? Cash collected from the customers during the year was $32,000. Cash collected from the customers during the year was $28,000. Cash collected from the customers during the year was $26,000. Cash collected from the customers during the year was $30,000.
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Given the following items , compute the required ones. REQUIRED COST OF SALES GIVEN Asset Turnover : Gross Margin: 1,2 0,3 NET SALES TOTAL SALES CURRENT ASSETS Fin.Goods InventoryTurnover Av. Finished Goods Inventory 120.000 Working.Capital Cycle Trade Receivables Turnover CURRENT RATIO 200 days 4 AV.TRADE RECEIVABLES TOTAL DEBT Long Term Debt Total Debt / Equity 250.000 TOT.DEBT/ TOTAL SOURCES
Supply the missing components of the Statement of Financial Position and Sales information using the following financial data:Debt ratio: 50%Current ratio: 1.8×Total assets turnover: 1.5×Days sales outstanding: 36.5 days*Gross profit margin on sales: (Sales − Cost of goods sold)/Sales = 25%Inventory turnover ratio: 5×*Calculation is based on a 365-day year.Statement of Financial Position(in Thousands)Cash ________Accounts payable_________Accounts receivable ________Long-term debt PhP120,000Inventories ________Common stock_________Fixed assets ________Retained earnings 195,000Total assets PhP600,000Total liabilities and equity _________Sales _______Cost of goods sold _________
Use the following data to answer Questions 13 through 19. (Answers may be rounded off.) Alpha Company Sales 6000 Cost of goods sold 3500 Average Inventories 620 Accounts receivable Working capital. 740 Cash 450 200 Accounts payable 550 Fixed assets 4680 Total assets 5900 Annual purchases 2300 19. Alpha's cash conversion cycle is a. 35 days b. 107 days. c. 46 days d. 16 days. I I
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