Heritage Farms has sales of $1.62 million with costs of goods sold equal to 78 percent of sales. The average inventory is $369,000, accounts payable average $438,000, and receivables average $147,000. How long is the cash conversion cycle?

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A: Average payment period is period required to pay the suppliers and vendors. Average payment period…

Q: Direct Furnishings Inc. has the following data:Annual sales                      $10,000,000Cost of…

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A: The cash conversion cycle (CCC) is a measure of a company's efficiency in managing its working…

Q: Columbus Corp. has annual sales of $80, 000, 000; its average inventory is $20, 000, 000; and its…

A: Free cash flow refers to the cash that is generated after considering the cash outflows i.e.…

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A: The operating cycle is an important measure because it helps the entity to check how many days it…

Q: mekmek Corporation uses the Baumol Cash Model to determine its optimal cash balance. For the coming…

A: SOLUTION- BAUMOLS MODEL  IS ONE OF THE CASH MANAGEMENT MODELS WHICH IS USED TO DECIDE HOW MUCH CASH…

Q: Calculate the cash conversion cycle. Round your answer to the nearest whole number.   days…

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Q: CCC Corp. has annual turnovers of inventory, receivables, and payables of 12,18, 8 respectively.…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Skylark Industries has P6,000,000 in inventory and P3,000,000 in accounts receivable. The company…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: How much cash will be collected from this month sales?

A: A Cash Discount is a discount over the net payable amount. It is usually offered to lure the…

Q: Use the following to determine FCF (Free Cash Flow) for the current year. Assume an effective tax…

A: Free cash flow (FCF) represents the cash remaining for a company after covering its operating…

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A: Cash Conversion Cycle is a metric that expresses the length of time (in days) that it takes for a…

Q: The Dire Corporation has an inventory conversion period of 75 days, a receivables collection period…

A: Formula: cash conversion cycle = inventory conversion period + receivables collection period -…

Q: What does it mean by Cash sales is 50% of total sales

A: The quantity of goods and services a business sells over the course of a reporting period is…

Q: 2. Tortellini Inc. payables policy is being revised. It has an annual overall sales of P50,735,000,…

A: Following is the answer to the given question

Q: (16-11) Cash Conversion Negus Enterprises has an inventory conversion period of 50 days, an average…

A: Number of days 365 Days Divided by:  Average collection period 35 Days   Accounts receivable…

Q: "You have recently been hired to improve the performance of Multiplex Corporation which has been…

A: To calculate the cash conversion cycle for Multiplex Corporation, we need to find the number of days…

Q: Illustration: A company sells $50,000 of goods with the terms net/30. The receivable is immediately…

A: Sales price = $50,000 Factor fee = 3% Interest = 10% reserve = 8%

Q: ntonio is an analyst at Barrilla Group. The firm turns over its inventory 5 times each year. It has…

A: Cash conversion cycle tells that how much period is required to collect money from customer and…

Q: What is the receivales turnover and what is the average collection period (days sales outstanding) ?

A: Information Provided: Credit sales = $10,640,000 Receivables = $1,520,000

Q: calculate the present value of this cash outflow assuming trade credit terms of a) 30 days b) 45…

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

Q: Westerly Industries has the following financial information. What is its cash conversion cycle?…

A: The cash conversion cycle refers to the number of days required to convert the cash that is spent on…

Q: Fires Inc. has a cash conversion cycle of 3 weeks. It has a receivable turnover of 45 and disburse…

A: Return on assets indicates the firm's profitability on total assets. It can be calculated by…

Q: Calculate the average collection period, average payment period, inventory turnover period and cash…

A: Cash conversion cycle is the period required to recover the cash money from the customers from…

Q: Skylark Industries has P6,000,000 in inventory and P3,000,000 in accounts receivable. The company…

A: GIVEN  INVENTORY=P6000,000ACCOUNTS RECEIVABLES=P3000,000SALES=P100,000DPO=30 DAYS

Q: A factory costs $970,600. You forecast that it will produce cash inflows of $839,085 in year 1,…

A: The question is related to Capital Budgeting. The Net Present Value is the difference between…

Q: Operating Cycle length. Data: Accounts Payable average amount: 200 Eur/day Total Purchases: 3200…

A: The question is related to Cash conversion cycle and Operating cycle length.  Cash conversion cycle…

Q: Global Services is considering a promotional campaign that will increase annual credit sales by…

A: The formula used to determine the investments is as follows:Investments = Sales / Respective…

Q: 2. In the working capital management, we know about cash conversion cycle model. For problem if…

A: Cash conversion cycle (CCC) is measures the time (in days) taken by a company to convert its…

Q: PROBLEMS Bacolod Supermart made cash sales of P3,000,000 and credit sales of P8,000,000. Out of the…

A: The accrual profit is the profit calculated on the basis of revenue earned and expenses incurred…

Q: Cost of goods sold = 100,000 Merch at Beginning = 50,000 Merch at End = 45,000 Acct Payable…

A: Given that: Cost of goods sold = 100,000 Merch at Beginning = 50,000Merch at End = 45,000 Acct…

Q: Qwerty Limited has sales revenue of $4,500,000 (all on credit), cost of sales of $2,997,000,…

A: Accounts Receivable Turnover Ratio The ratio of the median trade receivables for a term divided by…

Q: Your boss asks you to compute the company's cash conversion cycle. Looking at the financial…

A: To calculate the cash conversion cycle, we need to find the days inventory outstanding (DIO), days…

Q: Marian Co. has credit sales of P240,000 with a GP rate of 20% of Credit Sales. It has an average…

A: 1. Operating Cycle - The time it takes a company to buy goods, sell them and receive cash from the…