Consider the following financial statement information for the Emma Corporation:ItemInventoryAccountsreceivableAccountspayableNet salesCost of goodssoldBeginning$ 10,6005,6007,800Operating cycleCash cycle$86,00066,000All sales are on credit. Calculate the operating and cash cycles. (Use 365 days a year.Do not round intermediate calculations and round your answers to 2 decimal places,e.g., 32.16.)Ending$11,6005,9008,200daysdays

Company needs to maintain a proper amount of working capital for that company needs to calculate the…

Consider the following financial statement information for the Emma Corpo Item Inventory Accounts receivable Accounts payable Net sales Cost of goods sold Beginning $ 10,600 5,600 7,800 $86,000 66,000 Ending $11,600 5,900 8,200

Consider the following financial statement information for the Emma Corpo Item Inventory Accounts receivable Accounts payable Net sales Cost of goods sold Beginning $ 10,600 5,600 7,800 $86,000 66,000 Ending $11,600 5,900 8,200

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

See similar textbooks

Related questions

Q: The financial statements for Warren Company show the following: Cost of goods sold $745,000…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: Marigold Corp. recorded the return of $170 of goods originally sold on credit to Discount…

A: The sales return is connected with sales return and allowance and account receivable. As the account…

Q: Beth's Jewels Cost of Goods Sold Cost of goods sold: Cost of goods sold %24 %24

A: Cost of goods sold is the amount of expenditure incurred on those goods which are sold by the…

Q: Abbott Company purchased $6,500 of merchandise inventory on account. Which of the following entries…

A: The correct answer is: (C) inventory Dr. $6,500 Accounts payable. Cr. $6,500 This is…

Q: Using the following information, what is the amount of gross profit? Purchases $ 27,259 Selling…

A: Gross profit = Sales - Cost of goods sold

Q: The income statement includes the items listed below: Net Sales $900,000 Gross Profit…

A: 1. Cost of Goods Sold = Net sales- Gross Profit 2. Net Purchase= Purchase-Discount-Returns…

Q: Shown below in T-account format are the beginning and ending balances ($ in millions) of both…

A: Cost of Goods Sold360Add: Increase in Inventory (154.2-150)4.2Purchases of the Year364.2Less:…

Q: Solving this question

A: Step 1: Step 2: Step 3: Step 4:

Q: Inventory The following account balances have been entered in the Income Statement section of the…

A: 1) Cost of delivered merchandise: Purchases + Transportation in = $142,734 +$ 2,663= 145,397 2) Net…

Q: The following amounts are known: Beginning merchandise inventory $29,000 Ending merchandise…

A: Income statement is the statement which states the expenses and the revenues of the company during…

Q: s

A: Inventory Valuation is a method of calculating the value of stock at the end of an accounting…

Q: 2. Compute the cost of goods sold using the following information Beginning Inventory = $5,000…

A: Cost of goods sold: Cost of goods sold is the accumulated total of all the costs incurred in…

Q: Based on the following data, estimate the cost of ending merchandise inventory using the gross…

A: Cost of goods sold = Sales (net) - gross profit (35% of sales) Cost of goods sold = $729,000 -…

Q: se the following information to prepare the cost of goods sold section of the income statement for…

A: Cost of goods sold represents the amount incurred in selling the product by the company.

Q: Shown below In T-account format are the beginning and ending balances ($ in millions) of both…

A: IntroductionCash paid to Suppliers represents the payment made by Company to Merchandise the…

Q: Crane Retail Corporation purchases $470 of merchandise on credit. Using the periodic inventory…

A: Lets understand the basics. There are two inventory methods are generally followed which are, (1)…

Q: Need Help with this Question

A: Given:Sales: $26,800,120Cost of Goods Sold: $18,925,000Step 1: Compute for the Gross ProfitGross…

Q: Subject: accounting Shown below in T-account format are the beginning and ending balances…

A: Cash Paid to Suppliers - Cash Paid represents operating activity in the cash flow statement. This…

Q: The following amounts are known: Beginning merchandise inventory $28,000 Ending merchandise…

A: Cost of Goods sold: It is the cost incurred for manufacturing the product which sold the company.

Q: The Income Statement section of the Johnson Company worksheet for the year ended December 31, 20X1,…

A: Income statement is a financial statement that shows the profitability, total revenue and total…

Q: Provide help

A: Option a) $210,000: This option is incorrect because it underestimates the gross profit. This likely…

Q: Calculate the average inventory (in $) and inventory turnover ratio for the given company. (Round…

A: Inventory turnover ratio = cost of goods sold / Average inventory Average inventory = Beginning…

Q: Using the following information, what is the amount of gross profit? Purchases $30,118 Selling…

A: Gross profit = sales + Merchandise inventory September 30 - Purchases - Merchandise inventory…

Q: Beginning merchandise inventory $42,000 Ending merchandise inventory 37,000 Purchases 93,000…

A: Cost of goods sold is the expenses related to sold goods (excluding selling and distribution…

Q: pare the nature of expense SCI for the following accounts below: Account titles Balance…

A: solution : nature of expense statement of comprehensive income is prepared below Revenue…

Q: Using the following information, what is the amount of merchandise available for sale? Purchases…

A: Formula: Cost of goods available for sale = Beginning inventory + Net purchases

Q: Give this Questions answer

A: The gross profit percentage is a measure of profitability that shows how much each sales dollar…

Q: Using the followlng Information, answer the questions. Net sales $198,000 Purchases 92,000 Purchases…

A: Cost of goods sold means total cost incurred on goods that are being sold by the business in the…

Q: I want the Answer of this Question

A: Step 1: Sales $26800120 and cost of goods sold (COGS) = $18925000. Hence, gross profit = $26800120…

Q: Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the…

A: Cost of Goods Sold(COGS) is total which is incurred by business firm to produce the trading product…

Q: Financial information is presented below: Operating Expenses Sales Returns and Allowances Sales…

A: Gross ProfitGross profit is the profit the company earns before the deduction of operating…

Q: Prepare a properly-formatted Income Statement using the periodic method of inventory control using…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: Using the following information, what is the cost of goods sold? Purchases $32,282 Selling…

A: Cost of goods sold: It refers to the cost incurred by a company that is directly related to…

Q: For the current period, the following data were taken from the ledger: $ 40,000 Purchases Purchases…

A: Cost of goods sold is the cost of units sold during the period. It is the difference between cost of…

Q: Assume the perpetual inventory system is used. Sales $642,363 Merchandise Inventory 582,620 Sales…

A: Net sales is the sum of a company's gross sales minus its returns, allowances, and discounts. Net…

Question

Consider the following financial statement information for the Emma Corporation:
Item
Inventory
Accounts
receivable
Accounts
payable
Net sales
Cost of goods
sold
Beginning
$ 10,600
5,600
7,800
Operating cycle
Cash cycle
$86,000
66,000
All sales are on credit. Calculate the operating and cash cycles. (Use 365 days a year.
Do not round intermediate calculations and round your answers to 2 decimal places,
e.g., 32.16.)
Ending
$11,600
5,900
8,200
days
days

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define=operating and cash cycle

VIEW

Step 2: Calculation of cash cycle and operating cycle

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Using the following information, what is the amount of gross profit? Purchases $ 25,449 Selling expense $ 970 Inventory, September 1 5,138 Inventory, September 30 8,660 Administrative expense 545 Sales 55,013 Rent revenue 844 Interest expense 907 A. $907 B. $21,927 C. $24,542 D. $33,086
Cop
AB Ltd. has MCC has prepared the Income statement including the following data (all sales are on account): Sales $80,000 Cost of Goods Sold Gross Profit Expenses Net Profit $50,000 $ 25,000 $ 10,000 $15,000 The comparative balance sheet shows the following data (by definition, accounts payable relates to merchandise purchases only): End of Year Beginning of Year Accounts Receivables (net) Inventory Prepaid Expenses Accounts Payable $7,000 $3,000 $2,000 $1,140 $5,280 $2,000 $1,000 $1,500 Required 1: What is the amount of Cash received from Customers? $ Required 2: What is the amount of Cash paid for merchandise purchase? $
The following accounts and balances are taken from the books of Bosox Company which uses the periodic inventory system. Sales $470,000 Sales returns and allowances 15,000 Sales discounts 2,500 Purchases 255,000 Purchases returns and allowances 18,000 Purchases discounts 5,000 Transportation-In 1,500 Operating expenses 125,000 Beginning inventory $40,000 Ending inventory 35,000 a. Calculate the cost of good sold b. Calculate the gross profit c. Calculate the net income
Using the following information, what is the amount of net income? Purchases $ 25,599 Selling expenses $ 838 Merchandise inventory, September 1 6,382 Merchandise inventory, September 30 11,356 Administrative expenses 765 Sales 47,294 Rent revenue 908 Interest expense 1,144 O a. $27,118 Ob. $24,830 Oc. S18,448 Od. S36,186
Need help with this one
Using the following information, what is the amount of gross profit? Purchases $ 30,526 Selling expense $ 769 Inventory, September 1 5,755 Inventory, September 30 10,605 Administrative expense 732 Sales 56,096 Rent revenue 984 Interest expense 1,159 $25,676 $29,932 $30,420 $1,159
Below are some of the account balances of FDN Company. Purchases P 1,269,500 Purchase returns and allowances 59,725 Freight in 33,800 Freight out 28,950 Beginning inventory 289,150 Cost of goods sold 1,232,825 How much is the total cost of goods available for sale?
Selected data for three companies are given below. All inventory amounts are ending balances. Description Amount Subcategory, Accounts Receivable 16,100 Administrative Expenses 15,300 Cash 26,500 Cost of Goods Sold 46,500 Equipment 53,000 Merchandise Inventory 7,300 Sales Revenue 92,000 Sellilng Expenses 20,500 Description Amount Subcategory, Accounts Receivable 10,800 Cash 7,800 Equipment 47,400 Rent Expense 5,200 Service Revenue 34,100 Utilities Expense 2,200 Wages Expense 10,500 Description Amount Subcategory, Accounts Receivable 25,400 Administrative Expenses 42,900 Cash 27,700 Cost of Goods Manufactured 112,900 Cost of Goods Sold 98,000 Equipment 259,000 Finished Goods Invetory 10,800 Raw Materials Inventory 8,800 Sales Revenue 223,900 Selling Expenses 49,500 Work-in-Process Inventory 5,200 Using the data above, indentify each company as a Service Company, Merchandising Company, or…

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS