Fires Inc. has a cash conversion cycle of 3 weeks. It has a receivable turnover of 45 and disburse payments to suppliers after 1 week. Determine the normal operating cycle of Fires Inc. if the 360-day year is used. 2. Airbmac Inc. has a total asset and total sales of P1,500,000 and P4,500,000, respectively. If the net income of the firm is only 4% of the sales revenue, what is the return on assets?
Fires Inc. has a cash conversion cycle of 3 weeks. It has a receivable turnover of 45 and disburse payments to suppliers after 1 week. Determine the normal operating cycle of Fires Inc. if the 360-day year is used. 2. Airbmac Inc. has a total asset and total sales of P1,500,000 and P4,500,000, respectively. If the net income of the firm is only 4% of the sales revenue, what is the return on assets?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Fires Inc. has a cash conversion cycle of 3 weeks. It has a receivable turnover of 45 and disburse payments to suppliers after 1 week. Determine the normal operating cycle of Fires Inc. if the 360-day year is used.
2. Airbmac Inc. has a total asset and total sales of P1,500,000 and P4,500,000, respectively. If the net income of the firm is only 4% of the sales revenue, what is the return on assets?
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