Cash Conversion Cycle Exercise (By Pair)Company XYZ Financial Data (for a specific period).• Net Sales (Credit Sales): $200,0000000●●Cost of Goods Sold (COGS): $120,000Accounts Receivable (AR) at the beginning of the period: $30,000Accounts Receivable (AR) at the end of the period: $40,000Inventory at the beginning of the period: $50,000Inventory at the end of the period: $60,000Accounts Payable (AP) at the beginning of the period: $20,000Accounts Payable (AP) at the end of the period: $25,000Compute for the Cash Conversion Cycle

Cash conversion cycle is one of the efficiency measure being used in business. This is sum of days…

Answered: Cash Conversion Cycle Exercise (By…

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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Total assets turnover: 1.1x Days sales outstanding: 36.5 daysa Inventory turnover ratio: 3.75x Fixed assets turnover: 2.5x Current ratio: 2.0x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. 1 Do not round intermediate calculations. Round your answers to the nearest dollar. Balance Sheet Cash Accounts receivable Inventories Fixed assets Total assets Sales $ $ $330,000 Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold $ $ $ 49,500 115,500 Check My Work (2 remaini
Net sales Cost of goods sold Gross margin Operating expenses Net income Cash Accounts receivable, net Merchandise inventory Plant assets, net Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equity Goliath Company Comparative Income Statements For Years Ended December 31 Current Year One Year Ago $ 206,000 $ 184,000 108,000 121,000 85,000 45,000 $ 40,000 76,000 40,000 $ 36,000 Goliath Company Comparative Balance Sheets For Years Ended December 31 Current Year $ 153,000 58,000 30,000 170,000 $ 411,000 $ 36,000 190,000 60,000 125,000 $ 411,000 Required: Using the above information, compute the following: Two Years Ago $ 160,000 92,000 68,000 36,000 $ 32,000 One Year Ago $ 158,000 52,000 17,000 170,000 $ 397,000 $ 32,000 220,000 60,000 85,000 $ 397,000 Three Years Ago $ 114,000 78,000 36,000 19,000 $ 17,000 Two Years Ago $ 129,000 45,000 23,000 140,000 $ 337,000 $ 28,000 200,000 60,000 49,000 $ 337,000 Three Years Ago $ 156,000…
The following data were taken from a company’s latest financial statements: Annual sales $2,433,332 Cost of goods sold 2,027,778 Inventories 500,000 Accounts receivable 600,000 Accounts payable 300,000 What is the company’s cash conversion cycle? Which answers? 54 days 90 days 111 days 75 days
Claculate Delta Airlines' Cash COnversion Cycle based on the following information: Sales 289,729 COGS 196,476 Accounts Receivable 35,419 Inventory 4,248 Accounts Payable 56,227
Sunburst Electronics reported the following sales information: Cash sales: $82,750 Credit sales: $65,300 Sales returns and allowances: $9,450 Sales discounts: $5,600 Calculate Sunburst Electronics' net sales for this period. a. $133,000 b. $148,050 c. $138,600 d. $143,650 e. $127,400
What is the amount of sales under cash basis? What is the amount of purchases under cash basis? What is the cost of goods sold under cash basis? What is the amount of depreciation under cash basis? What is the net income under cash basis?
j.Quick ratio is ____________ times. k.Inventory turnover is ________ times. l.Average collection period is RM__________ days.
Given the following information: $8 million $10 million $7 million $3 million Average Inventory: $6 million Average A/R: Average Fixed Assets: Accounts Payables:$4 million Revenues: $2 million Liabilities: Total Expenses: Cost of Goods Sold: $10 million Assume no other assets or liabilities exist beyond what is articulated above. a. Compute Net Profit Margin b. Compute Total Asset Turnover c. Compute Return on Equity (ROE) d. Compute Inventory Turnover e. How much equity would have to be swapped out for debt to increase ROE by 1% assuming that nothing else changes? f. What is the firm's sustainable growth rate if dividends are equal to $0.5 million?
A-6
Operating profit 43-7 Sales revenue 910-4 Share capital and reserves 182-3 Long-term borrowing 77-9 Inventory 46-2 Receivables 97-8 Payables 51:3 Calculate the following: GReturn on Cepitatemployest (i Assetturnover (ii) Current ratio (iv) Acid test (quick) ratio
Claculate Delta Airlines' Cash COnversion Cycle based on the following information: Sales 284,390 COGS 173,503 Accounts Receivable 25,380 Inventory 7,090 Accounts Payable 55,549
Subject: acounting

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