Compute the number of days in the cash conversion cycle for each year. Note: Use 365 days in a year. Round calculations to the nearest whole day.)A manufacturer reports the data below. Current Year Prior Year Accounts payable $ 6,943 $ 10,888 Accounts receivable 24,625 17,328 Inventory 9,244 8, 575 Net sales 184,000 137,000 Cost of goods sold 94,000 120,000 (1) Compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year? Compute the number of days in the cash conversion cycle for each year. Note: Use 365 days in a year. Round calculations to the nearest whole day.) Cash conversion cycle Current year days Prior year days

Compute the number of days in the cash conversion cycle for each year. Note: Use 365 days in a year. Round calculations to the nearest whole day.)A manufacturer reports the data below. Current Year Prior Year Accounts payable $ 6,943 $ 10,888 Accounts receivable 24,625 17,328 Inventory 9,244 8, 575 Net sales 184,000 137,000 Cost of goods sold 94,000 120,000 (1) Compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year? Compute the number of days in the cash conversion cycle for each year. Note: Use 365 days in a year. Round calculations to the nearest whole day.) Cash conversion cycle Current year days Prior year days

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

See similar textbooks

Similar questions

Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm’s cash conversion cycle? If annual sales are $4,380,000 and all sales are on credit, what is the firm’s investment in accounts receivable? How many times per year does Negus Enterprises turn over its inventory?
Please see image to solve question.
Calculate the cash cycle (in days) based on the following information (keep two decimal places). Variable Inventory Accounts receivable Accounts payable Beginning of the year End of the year $2500 $4000 $3900 $3000 $1500 $1000 Net sales over the year is $14000 and costs of goods sold is $8000. Your Answer: Answer
Use the information below to compute the number of days in the cash conversion cycle for Apple ($ millions). Round calculations to the nearest whole day. Accounts payable, end of year $49,049 Inventory, end of year . $ 4,855 Accounts receivable, net, end of year 17,874 Net sales 229,234 Cost of goods sold . 141,048
Mark's Manufacturing's average age of accounts receivable is 45 days, the average age of accounts payable is 40 days, and the average age of inventory is 69 days. Assuming a 365-day year, what is the length of its cash conversion cycle? a. 78 days b. 74 days c. 70 days d. 63 days e. 67 days
ABC Inc. has the following data. What is the firm's cash (conversion) cycle? Inventory Conversion Period = 38 days Receivables Collection Period = 19 days Payables Deferral Period = 26 days
Westerly Industries has the following financial information. What is its cash conversion cycle? (Hint: Use a 365-day year.) Sales Cost of Goods Sold $150,000 120,000 Accounts Receivable 46,500 Inventory 27,000 Accounts Payable 64,500 The cash conversion cycle is days. (Round to two decimal places.)
еВook Zane Corporation has an inventory conversion period of 90 days, an average collection period of 34 days, and a payables deferral period of 48 days. Assume 365 days in year for your calculations. a. What is the length of the cash conversion cycle? Round your answer to two decimal places. days b. If Zane's annual sales are $3,454,540 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. How many times per year does Zane turn over its inventory? Assume that the cost of goods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio. Do not round intermediate calculations. Round your answer to two decimal places.
Teams MSFT Corporation has the following information: Inventory conversion period 79.02 days Receivables collection period 35.8 days Payables deferral period 9.6 days Can you determine the length of time (days) for them to cycle cash in the company? (represent your numeric result in two decimal places)
Brothers Breads has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days a. 31 days b. 34 days C. 38 days d. 42 days e. 46 days
Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory Conversion Period = 59 days Receivables Collection Period = 19 days Payables Deferral Period = 41 days Please explain process and show calculations.