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

Q: Captain Kurt's Enterprises has a receivables turnover rate of 12.8, a payables turnover rate of…

A: The operating cycle is the average time it takes a company to convert its inventory into cash. It…

Q: Record the following transactions on the books of Hiroole Ltd., which uses a perpetual inventory…

A: Perpetual inventory system: It is a method of inventory management that records real-time…

Q: Blackwell Co. has credit sales of $317,428, costs of goods sold of $151,217, and average accounts…

A: Days sales in outstanding is the number of days required to collect receivables from credit…

Q: A company reports the following: Line Item Description Amount Cost of goods sold $696,000…

A: The objective of the question is to calculate the inventory turnover and the days' sales in…

Q: A company reports the following:   Cost of goods sold $4,788,800   Average inventory 292,000 Round…

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory  = (Beginning…

Q: Double West Suppliers (DWS) reported sales for the year of $290,000, all on credit. The average…

A: Sales = $290,000 Average gross profit = 30% of sales   Beginning Ending Accounts receivable…

Q: What is the firm's cash (conversion) cycle?

A: Information provided: Inventory Conversion Period = 38 days Receivables Collection Period = 19 days…

Q: Compute the accounts receivable turnover in days. fill in the blank 4 days 5.  Compute the…

A: Accounts receivable turnover in days is the average number of days within which collection is…

Q: Use the following information to answer questions 1-3: January Cash Sales $40,000 Credit Sales…

A: To determine the balance on March 31, we need to calculate the total collections from January to…

Q: 23. Use the following financial statement information: Item Inventory Accounts Receivable Accounts…

A: An organization's operating cycle is the time it takes to purchase products, sell them, and be paid…

Q: The following data were gathered from the records of Sevillo Bolivar Enterprises: Inventories:…

A:

Q: The average collection period determines the number of a.days it takes to sell the inventory.…

A: Average collection period is the time taken by an entity to collect from its accounts receivables…

Q: Mentha Company currently has the following statistics: . Days required to sell inventory: 80 Days…

A: The operating cycle of a company is the average time required for a business to make an initial…

Q: Fitbands’ estimated sales are: Oct.   $131,989 Nov.   195,710 Dec.   249,288 Jan   124,318 Feb.…

A: Balances in accounts receivable = (Current month sales x 35%) + (Last month sales x 10%)

Q: Calculate the inventory-to-sale conversion period based on the following information: average…

A: Inventory-to-sale Conversion Period - This Ratios shows the amount of time required to sell the…

Q: A company reports the following: Cost of goods sold Average inventory Determine (a) the inventory…

A: Inventory turnover and number of days sales in inventory are two important financial metrics used by…

Q: Calculate the cost of the inventory purchased for the purchasing company: Invoice price of goods is…

A: Lets understand the basics. For the attracting early payment from the customer, supplier provide…

Q: A company reports the following: Cost of goods sold $585,825 Average inventory 78,110…

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: Give company's cash cycle

A: The cash cycle, also known as the cash conversion cycle (CCC), is a metric that measures how long it…

Q: Based on the following data for the current year, what is the inventory turno-

A: Answer:   Option d

Q: A company reports the following: Cost of merchandise sold $207,320 Average merchandise inventory…

A: · Ratio analysis used to identify the business performance of the company.· It is used to measure…

Q: Consider the following financial statement information for the Newk Corporation: Item Beginning…

A: Cash conversion cycle is the metric which helps the entity to measure the time taken by an entity to…

Q: Compute Altoona Company's (a) inventory turnover ratio and (b) number of days' sales in inventory…

A: Inventory turnover ratio (ITR) is a financial ratio that indicates how many times a company's…

Q: Compute for Receivable Collection Period, Inventory Conversion Period, Payables Deferral period and…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: A company is preparing its financial statements and needs to complete the following calculations…

A: The Cost of Goods Sold (COGS) is calculated using the formula: COGS = Beginning Inventory +…

Q: Compute the days’ sales in inventory for International Paper and Walmart. Round to nearest day.…

A: Ratio analysis s helps to analyze the financial statements of the company. Management can make…

Q: A company reports the following:   Cost of goods sold $3,960,250   Average inventory 255,500 Round…

A: Inventory Turnover = Cost of goods sold/ Average Inventory Number of days sales in Inventory =…

Q: ng: Cost of goods sold $442,380 Average inventory 73,730 Determine (a) the inventory turnover

A: Given  A company reports the following: Cost of goods sold $442,380 Average inventory 73,730…

Q: A company reports the following: Line Item Description Amount Cost of goods sold $2,007,500 Average…

A: Solution:a.   Inventory turnover = Cost of good sold / Average inventory…

Q: Following are data for December 31,2021: Net sales $5,365,000 Cost of sales, and related buying…

A: Inventory  turnover  = cost of goods sold/ average  Inventory

Q: SCC Company reported the following for the current year:   Net sales $ 48,000 Cost of goods sold…

A: Inventory turnover ratio :Inventory turnover ratio indicates the demand for the product &…

Q: You are given the following information: STARTING Inventory A/R A/P Credit Sales COGS $10,576 $5,129…

A: The cash cycle is the amount of time it takes for a firm to transform its inventory investment into…

Q: JC Penney has sales of $897,400, costs of goods sold of $628,300, inventory of $208,400, and…

A: Inventory balance of JC Penny = $208400Accounts receivable balance = $74100Cost of goods sold =…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.