General accounting Given the following data, calculate the firm's (a) operating cycle and (b) cash conversioncycle:Average Inventory $45,000Average Accounts Receivable $50,000Average Accounts Payable $40,000••Sales $300,000•Cost of Goods Sold $180,000

Step 1: Definition of Operating Cycle and Cash Conversion CycleOperating Cycle: The operating cycle…

Answered: Given the following data, calculate the…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 12P

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Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
You are provided the following working capital information for the Ridge Company: Account Inventory $ $12,890 Accounts receivable 12,800 Accounts payable 12,670 Net sales $124,589 99,630 Cost of goods sold What is the cash conversion cycle for Ridge Company? a. 38.3 days b. 129.9 days c. 83.5 days d. 46.4 days
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What is the cash conversion cycle? General accounting
What is the cash conversion cycle for ABC corporation using the following information: sales: 10,000,000 cost of goods:7, 500,000 accounts receivable: 1, 232, 877 inventory turnover ratio: 10 payable deferred period:40
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
Calculating Cycles Consider the following financial statement information for the Hop Corporation: Item Beginning Ending Inventory $16,284 $19,108 Accounts Receivable 11,219 13,973 Accounts Payable 13,960 16,676 Net Sales $219,320 Cost of Goods Sold 168,420 Calculate the operating and cash cycles. How do you interpret your answer?

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Given the following data, calculate the firm's (a) operating cycle and (b) cash conversion cycle: Average Inventory $45,000 Average Accounts Receivable $50,000 Average Accounts Payable $40,000 • • Sales $300,000 • Cost of Goods Sold $180,000