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Given the following information, calculate for 2016 the number of days of working capital financing the firm will need to obtain from other sources? (i.e., show the calculations of the Days Outstanding (including embedded Turnover ratios) for each of Accounts Receivable, Inventory, and Accounts Payable, as well as the intermediate calculation of Purchases used to calculate Days Outstanding for Payables, and finally, the number of days of external working capital financing required.

Given the following information, calculate for 2016 the number of days of working capital financing the firm will need to obtain from other sources? (i.e., show the calculations of the Days Outstanding (including embedded Turnover ratios) for each of Accounts Receivable, Inventory, and Accounts Payable, as well as the intermediate calculation of Purchases used to calculate Days Outstanding for Payables, and finally, the number of days of external working capital financing required.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Given the following information, calculate for 2016 the number of days of working capital financing the firm will need to obtain from other sources?

(i.e., show the calculations of the Days Outstanding (including embedded Turnover ratios) for each of Accounts Receivable, Inventory, and Accounts Payable, as well as the intermediate calculation of Purchases used to calculate Days Outstanding for Payables, and finally, the number of days of external working capital financing required.

 

 

2015 2016 Accounts Receivable, net $ 1,036 $ 1,124 Accounts Payable 406 384 Inventory 1,070 1,128 Credit Sales 6,410 7,272 Cost of Goods Sold 4,074 4,588 Selling and Admin. Expense 2,162 2,262
Transcribed Image Text:2015 2016 Accounts Receivable, net $ 1,036 $ 1,124 Accounts Payable 406 384 Inventory 1,070 1,128 Credit Sales 6,410 7,272 Cost of Goods Sold 4,074 4,588 Selling and Admin. Expense 2,162 2,262
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