he Butler-Huron Company’s balance sheet and income statement for last year are as follows: Balance Sheet (in Millions of Dollars) Assets Liabilities and Equity Cash and marketable securities $95 Accounts payable*** $810 Accounts receivable* 977 Accrued liabilities Inventories** 1,825 (salaries and benefits) 584 Other current assets 45 Other current liabilities 290 Total current assets $2,942 Total current liabilities $1,684 Plant and equipment (net) 3,088 Long-term debt and other Other assets 6,068 liabilities 2,764 Total assets $6,068 Common stock 152 Retained earnings 1,468 Total stockholders’ equity $1,620 Total liabilities and equity $6,068 *Assume that all sales are credit sales and that average accounts receivable are the same as ending accounts receivable. **Assume that average inventory over the year was the same as ending inventory. ***Assume that average accounts payable are the same as ending accounts payable. Income Statement (in Millions of Dollars) Net sales $13,157 Cost of sales 9,217 Selling, general, and administrative expenses 2,593 Other expenses 859 Total expenses $12,669 Earnings before taxes 488 Taxes 195 Earnings after taxes (net income) $293 Assume that there are 365 days per year. Determine Butler-Huron’s cash conversion cycle. Round intermediate calculations and answer to one decimal place. days Determine Butler-Huron’s cash conversion cycle assuming that 65 percent of annual sales are credit sales (that is, 35% represent cash sales). Round intermediate calculations and answer to one decimal place. days Determine Butler-Huron’s cash conversion cycle assuming that 45 percent of annual sales are credit sales. Round intermediate calculations and answer to one decimal place. days
he Butler-Huron Company’s balance sheet and income statement for last year are as follows: Balance Sheet (in Millions of Dollars) Assets Liabilities and Equity Cash and marketable securities $95 Accounts payable*** $810 Accounts receivable* 977 Accrued liabilities Inventories** 1,825 (salaries and benefits) 584 Other current assets 45 Other current liabilities 290 Total current assets $2,942 Total current liabilities $1,684 Plant and equipment (net) 3,088 Long-term debt and other Other assets 6,068 liabilities 2,764 Total assets $6,068 Common stock 152 Retained earnings 1,468 Total stockholders’ equity $1,620 Total liabilities and equity $6,068 *Assume that all sales are credit sales and that average accounts receivable are the same as ending accounts receivable. **Assume that average inventory over the year was the same as ending inventory. ***Assume that average accounts payable are the same as ending accounts payable. Income Statement (in Millions of Dollars) Net sales $13,157 Cost of sales 9,217 Selling, general, and administrative expenses 2,593 Other expenses 859 Total expenses $12,669 Earnings before taxes 488 Taxes 195 Earnings after taxes (net income) $293 Assume that there are 365 days per year. Determine Butler-Huron’s cash conversion cycle. Round intermediate calculations and answer to one decimal place. days Determine Butler-Huron’s cash conversion cycle assuming that 65 percent of annual sales are credit sales (that is, 35% represent cash sales). Round intermediate calculations and answer to one decimal place. days Determine Butler-Huron’s cash conversion cycle assuming that 45 percent of annual sales are credit sales. Round intermediate calculations and answer to one decimal place. days
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
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he Butler-Huron Company’s
| Balance Sheet (in Millions of Dollars) | ||||
| Assets | Liabilities and Equity | |||
| Cash and marketable securities | $95 | Accounts payable*** | $810 | |
| Accounts receivable* | 977 | Accrued liabilities | ||
| Inventories** | 1,825 | (salaries and benefits) | 584 | |
| Other current assets | 45 | Other current liabilities | 290 | |
| Total current assets | $2,942 | Total current liabilities | $1,684 | |
| Plant and equipment (net) | 3,088 | Long-term debt and other | ||
| Other assets | 6,068 | liabilities | 2,764 | |
| Total assets | $6,068 | Common stock | 152 | |
| 1,468 | ||||
| Total |
$1,620 | |||
| Total liabilities and equity | $6,068 | |||
| *Assume that all sales are credit sales and that average accounts receivable are the same | ||||
| as ending accounts receivable. | ||||
| **Assume that average inventory over the year was the same as ending inventory. | ||||
| ***Assume that average accounts payable are the same as ending accounts payable. |
| Income Statement (in Millions of Dollars) | |
| Net sales | $13,157 |
| Cost of sales | 9,217 |
| Selling, general, and administrative expenses | 2,593 |
| Other expenses | 859 |
| Total expenses | $12,669 |
| Earnings before taxes | 488 |
| Taxes | 195 |
| Earnings after taxes (net income) | $293 |
Assume that there are 365 days per year.
- Determine Butler-Huron’s cash conversion cycle. Round intermediate calculations and answer to one decimal place.
days
- Determine Butler-Huron’s cash conversion cycle assuming that 65 percent of annual sales are credit sales (that is, 35% represent cash sales). Round intermediate calculations and answer to one decimal place.
days
- Determine Butler-Huron’s cash conversion cycle assuming that 45 percent of annual sales are credit sales. Round intermediate calculations and answer to one decimal place.
days
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