Provide the following information? Compute the Operating Cycle based on the following information:ABC Products provides the following information.Average Collection Period 45 daysAccounts Payable Period 45 daysAverage age of inventoryCompute operating cycle60 days

Step 1: Define What Is Average Collection PeriodA company's average collection period represents the…

Answered: Compute the Operating Cycle based on…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 5EA: Akira Company had the following transactions for the month. Calculate the ending inventory dollar...

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1. The following information has been calculated for ABC Co: 52 days 42 days Trade receivables collection period Raw material inventory turnover period Work in progress inventory turnover period 30 days Trade payables payment period Finished goods inventory turnover period 45 days 66 days What is the length of the net operating cycle?
Akira Company had the following transactions for the month. Calculate the ending inventory dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Given the following information Compute: (A) age of inventory; and (B) operating cycle. (check the attached picture) Choose the bullet with the correct answer (A) 18.5 days and (B) 25.5 days (A) 28.5 days and (B) 35.5 days (A) 28.5 days and (B) 55.5 days (A) 38.5 days and (B) 75.5 days (A) 38.5 days and (B) 95.5 days
Mentha Company currently has the following statistics: . Days required to sell inventory: 80 Days required to collect accounts receivable: 68 What is the company's operating cycle?
An analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to estimate the company's Accounts Payable. Sales = $93,398Cost of Goods Sold (COGS) = $36,052Cash Cycle = 22 daysOperating Cycle = 86 daysAccounts Receivable Period = AR Period = Average Collection Period (ACP) = 40 daysWhat is the company's Accounts Payable balance?
Calculate the inventory-to-sale conversion period based on the following information: average inventories = $120,000; average receivables = $90,000; average payables = $40,000; cost of goods sold = $182,500; and net sales = $365,000. 240 days 180 days 90 days 60 days
Use the following information to complete the calculations below. Cost of goods sold $195,640 Inventory: Beginning of year 20,500 End of year 18,628 a. Compute inventory turnover. b. Compute average daily cost of goods sold using a 365 day year. c. Compute number of days' sales in inventory. Round your answer to one decimal place. days
Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 36! days a year. a. Inventory turnover b. Number of days' sales in inventory days
Maple industries has the following operating solve this accounting questions
Consider the following transactions for DeTrees Company for the month shown in chronological order: In the table below, calculate the dollar value for the period for each of the following items using the listed cost allocation methods and using perpetual inventory updating. PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" with commas as needed (i.e. $12,345), except for the Weighted Average cost per unit, which will be rounded to two decimal places and include "$" (i.e. $12,345.67). Weighted average cost per unit = per unit. Cost Allocation Method Cost of Goods Available Cost of Goods Sold Ending Inventory Sales Gross Margin First-in, First-out (FIFO) Last-in, First-out (LIFO) Weighted Average (AVG)
Given the following information, calculate the operating cycle. Use average inventory and receivables in your calculations. Credit sales = = $1,000,000 Cost of goods sold = $750,000 Beginning balances: Inventory = $300,000 Accounts Receivable = $280,000 Ending balances: Inventory = $280,000 Accounts Receivable = $250,000 Multiple Choice 141 days 116 days 261 days 97 days 238 days
Periodic inventory by three methodsDymac Appliances uses the periodic inventory system. Details regarding the inventory ofappliances at January 1, purchases invoices during the next 12 months, and the inventorycount at December 31 are summarized as follows:Instructions1. Determine the cost of the inventory on December 31 by the first-in, first-out method.Present data in columnar form, using the following headings:Model Quantity Unit Cost Total CostIf the inventory of a particular model comprises one entire purchase plus a portion of another r purchase acquired at a different unit cost, use a separate line for each purchase.2. Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1).3. Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indicated in (1).4. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in…

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Compute the Operating Cycle based on the following information: ABC Products provides the following information. Average Collection Period 45 days Accounts Payable Period 45 days Average age of inventory Compute operating cycle 60 days