Hi expart answer do fast and step by step calculation with explanation for these general accounting question If a company has an inventory turnover of 7.3 and a receivablesturnover of 9.6, approximately how long is its operating cycle?a. 72 days.b. 88 days.c. 95 days.d. There is not enough information to calculate the operatingcycle.

Step 1: Define Operating Cycle and Cash CycleThe operating cycle for a firm represents the gross…

Answered: If a company has an inventory turnover…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 30MCQ

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A company has an average age of inventory (AAI) 55 days; average collection period (ACP)20 days and average payment period (APP) is 10 days. Calculate the following details of thecompany.A. Operating Cycle (OC)B. Cash Conversion Cycle (CCC)
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1. The following information has been calculated for ABC Co: 52 days 42 days Trade receivables collection period Raw material inventory turnover period Work in progress inventory turnover period 30 days Trade payables payment period Finished goods inventory turnover period 45 days 66 days What is the length of the net operating cycle?
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A company reports the following: Cost of goods sold $585,825 Average inventory 78,110 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a. Inventory turnover b. Number of days' sales in inventory days
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A company reports the following: Cost of goods sold $442,380 Average inventory 73,730 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a. Inventory turnover fill in the blank 1 b. Number of days' sales in inventory
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Which of the following is NOT a correct explanation for turnover ratios and periods calculated based on them? Select one: a. Receivables turnover indicates how many times a company circulates its receivables in a year. b. Average collection period is the number of days between the sale transaction and the collection of receivable from customer. c. Inventory turnover is the number of days between purchase of inventory and its sale to the customer. d. Average payment period is the number of days between the purchase transaction and the payment of payables to the suppliers. Clear my choice
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 500,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company's common stock at the end of the year was $30. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 1,090 9,200 12,500 740 $ 1,320 7,500 11,800 540 Total current assets 23,530 21,160 Property and equipment: Land 9,200 44,083 9,200 39,201 Buildings and equipment, net Total property and equipment 53,283 48,401 Total assets $76,813 $69,561 Liabilities and Stockholders' Equity Current…
You have been advised that a business has an inventory turnover of 8.49. What is the average number of days that inventory is retained in the business prior to its sale?

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If a company has an inventory turnover of 7.3 and a receivables turnover of 9.6, approximately how long is its operating cycle? a. 72 days. b. 88 days. c. 95 days. d. There is not enough information to calculate the operating cycle.