DJC Ltd., which uses IFRS, operates a coffee shop and began a promotion toincrease the sales of its dark roast coffee in December 20X1. Every time that acustomer buys a cup of this type of coffee for $2.00 each in December, the customergets a coupon for 1 free mini cookie that usually sells for $.40 each and costs thecompany $.20 to produce. Customers cannot use or redeem the coupons untilJanuary 20X2. In December 20X1, the company sold 2,800 cups of dark roastcoffee. Management expects customers will redeem 90% of the coupons based onmany promotions like this that the company has had in the past.In the blank box below, please provide the amount asked for (when enteringamounts please do not use commas, negative signs or dollar signs or cents - pleaseround your answer to the nearest dollar).Blank 1: The sales revenue for the dark roast coffee in the month of December20X1.

The sales revenue in the condition of the sales promotion will be the revenue for the period when…

Answered: Blank 1: The sales revenue for the dark…

Business

Accounting

Blank 1: The sales revenue for the dark roast coffee in the month of December 20X1.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 1BIC

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

DJC Ltd., which uses IFRS, operates a coffee shop and began a promotion to
increase the sales of its dark roast coffee in December 20X1. Every time that a
customer buys a cup of this type of coffee for $2.00 each in December, the customer
gets a coupon for 1 free mini cookie that usually sells for $.40 each and costs the
company $.20 to produce. Customers cannot use or redeem the coupons until
January 20X2. In December 20X1, the company sold 2,800 cups of dark roast
coffee. Management expects customers will redeem 90% of the coupons based on
many promotions like this that the company has had in the past.
In the blank box below, please provide the amount asked for (when entering
amounts please do not use commas, negative signs or dollar signs or cents - please
round your answer to the nearest dollar).
Blank 1: The sales revenue for the dark roast coffee in the month of December
20X1.

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