Cash Accounts receivable Inventories Total current assets Oriole Sports Equipment Company $ 687,800 1,844,500 1,320,700 $3,853,000 Liabilities and Equity Accounts payable Notes payable Total current liabilities $1,739,900 2,113,100 $3,853,000 Sales and Costs Net sales
Cash Accounts receivable Inventories Total current assets Oriole Sports Equipment Company $ 687,800 1,844,500 1,320,700 $3,853,000 Liabilities and Equity Accounts payable Notes payable Total current liabilities $1,739,900 2,113,100 $3,853,000 Sales and Costs Net sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Cash
Accounts receivable
Inventories
Total current assets
Oriole Sports Equipment Company
$ 687,800
1,844,500
1,320,700
$3,853,000
Liabilities and Equity
Accounts payable
Notes payable
Total current liabilities
$1,739,900
2,113,100
$3,853,000
Sales and Costs
Net sales
Cost of goods sold
$9,901,700
$5,955,500
Calculate the firm’s days sales outstanding. (use 365 days for calculation. Round answer to 1 decimal place e.g 15.1)
Days sales outstanding ——
What is the firms days sales in inventory?
Days payables outstanding?
Operating cycle?
How does it compare with the industry average of 75 days?
Is the firm efficient or inefficient in managing it's receivable and inventory as its operating cycle exceeds, is at par with or deceeds the industry average.
What is cash conversion days?
How does it compare with the industry average of 42.1 days?
The firm’s cash conversion cycle is on a deceeds, exceeds or par with the industry average.
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