If an average age of accounts payable is 15 days, the average age of accounts receivables is 60 days, and the average age of inventory is 10 days, the number of days in the operating cash conversion cycle is
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A: Cash Conversion Cycle is a method used by the management and it can be calculated as follows, =Days…
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A: The question is related to Ratio Analysis. The Accounts Receivables Turonver Ratio is calculated…
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A: As per the information provided: Collection period - 70 daysDays sales in cash - 32 daysCurrent…
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A:
Q: a. How long is cash typically tied up in inventories? (Show computations) b. What would be the…
A: a)-The Inventory conversion period In the question it takes 80 days to collect the sales receivable…
Q: ABCD Corporation has credit sales of $10,290,000 and receivables of $1,560,000. Assume there are 365…
A: In this we have to calculate the receivable turnover ratio using the formula.
Q: company reports the following: Sales Average accounts receivable (net) Determine (a) the accounts…
A: Solution:-a Computation of accounts receivable turnover as follows:- Accounts receivable turnover…
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A: The cash cycle of the company refers to the time it takes for the company to convert the investment…
Q: ccounts Receivable Analysis: A company reports the following Sales $649,700 64,970 Average accounts…
A: Ratio analysis: It is a method used to measure the liquidity, profitability, efficiency of the…
Q: Los Altos, Inc. has an accounts receivable turnover of 20. What is the company's average collection…
A: Formula: Average collection period = 365 days / Accounts receivable turnover. Division of 365 days…
Q: The days' sales uncollected ratio is used to: Measure how many days of sales remain until the end…
A: Formula: Days sales uncollected ratio = ( Accounts receivable / Net sales ) x 365 days Division of…
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A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: What is the number of days’ sales in receivables? Round to one decimal place. Group of answer…
A: Number of days' in receivables Days Sales Outstanding (DSO) represents the average number of days it…
Q: Which one of the following statements is correct if a firm has a receivables turnover of 10? It…
A: In this question, we are required to determine the correct statement related to receivables turnover…
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: Your company had net sales of $100,000 over the past year. One quarter of the sales were credit…
A: Net Sales = 100,000 One quarter were credit sales Credit Sales = Net Sales / 4 = 100,000 / 4 =…
Q: What relationship exists between the average collection period and accounts receivable turnover?…
A: Introduction:- Accounts receivable turnover ratio tells the number of times a company collects its…
Q: A company computes its accounts receivable turnover to be 20. Based onthis information, find the…
A: Working of the ACP (Average collection Period) is computed below:
Q: Using the Information below, compute the cash conversion cycle: 42 days 59 days 52 days Days' sales…
A: Cash conversion cycle is the number of days it takes for an inventory to convert into cash.
Q: Prestige Company has determined the following information for its recent fiscal year: Days inventory…
A: Cash conversion cycle: It can be defined as a metric that computes the time usually taken by a…
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A: Variables in the question:Cash cycle=43.5 daysOperating cycle=63 daysInventory period=27 days Cost…
Q: A company reports the following: Sales $1,180,410 Average accounts receivable (net) 56,210…
A: Given: Sales = $1,180,410 Average accounts receivables = $56,210
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A: Average collection period is one of efficiency ratio which is used in business. This shows time…
Q: A company reports the following: Line Item Description Amount Sales $5,250,000 Average…
A: The objective of the question is to calculate the accounts receivable turnover and the days' sales…
Q: If Cactus, Inc. has annual sales of $83,000, average accounts payable of $30,000, and average…
A: Sales = $83000 Account payable = $30000 Accounts receivable = $25000
Q: Based on the following data for the current year, what is the days' sales in receivables? Assume 365…
A: DAYS SALES IN RECEIVABLEDays Sales to Receivable is a ratio between 360/365 Days and Receivable…
Q: A company reports the following: Sales $315,360 Average accounts receivable (net) 39,420 Determine…
A: Accounts receivable turnover = ( Net Credit Sales / Average Accounts receivable ) Number of days'…
Q: A company has net income of $184,000, a profit margin of 8.5 percent, and an accounts receivable…
A: Profit margin=Net income/SalesHence sales=(184000/0.085)=$2164705.88
Q: The Malibu Corporation has annual credit sales of $25 million. The average collection period is 27…
A: Average collection period is the formula which is used for determining the average days will be…
Q: Alex has an inventory turnover of 15 and an accounts receivable turnover of 9. The accounts…
A: Cash cycle is the time period in which cash is again received by business organisation. It includes…
Q: Accounting has supplied the following information from our ERP system:Data: Sales over last 30 days…
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A: The cash cycle and operating cycle are both important financial metrics that help businesses…
Q: company reports the followin Sales $890,600 Average accounts receivable (net) 44,530 Determine (a)…
A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…
Q: An analyst has obtained the following information regarding ABC, Inc. Using this information, he…
A: Operating cycle is calculated as below: Now, Cash conversion cycle (CCC) will determine Days…
Q: 7. Assuming a 365-day year, how long (in average days) does the collectibles from customers stay as…
A: In order to increase the sales revenue, the business entity sold the goods on a credit basis. Out of…
Q: Zane Corporation has an inventory conversion period of 79 days, an average collection period of 43…
A: Calculate the cash conversion cycle as follows: Cash conversion cycle = Inventory period +…
Q: A company reports the following: Sales $838,040 Average accounts receivable (net) 51,100 Round your…
A: Formula: Accounts receivable turnover ratio = Net sales / Average accounts receivable Average…
Q: A company reports the following: Line Item Description Amount Sales $235,060 Average accounts…
A: The account receivables turnover is calculated as net sales divided by average account…
Q: A company recorded the following transactions: cash sales $10,000, credit sales $20,000, cash…
A: ACCOUNT RECEIVABLE TURNOVER RATIO Account Receivable Turnover Ratio is the Ratio Between Net…
Q: The Caccamisse Corporation has annual credit sales of $35 million. The average collection period is…
A: Sales are made on cash and credit basis. The amount to be collected from sales made on credit basis…
Q: A company reports the following: Sales $1,460,000 Average accounts receivable (net) 100,000…
A: a. Accounts receivable turnover = Net sales / average accounts receivable Accounts receivable…
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- Inmoo Company's average age of accounts receivable is 89 days, the average age of accounts payable is 40 days, and the average age of inventory is 48 days. Assuming a 365-day year, what is the length of its cash conversion cycle? Please explain process and show calculations.ABCD Corporation has credit sales of $12,690,000 and receivables of $1,970,000. Assume there are 365 days in a year. What is the receivables turnover? Round your answer to two decimal places. What is the average collection period (days sales outstanding)? Round your answer to the nearest whole number. days If the company offers credit terms of 50 days, are its receivables past due? Round your answer to the nearest whole number. Enter zero if the receivables are not past due. -Select-YesNoItem 3 , it is days overdue.The following data were taken from a company’s latest financial statements: Annual sales $2,433,332 Cost of goods sold 2,027,778 Inventories 500,000 Accounts receivable 600,000 Accounts payable 300,000 What is the company’s cash conversion cycle? Which answers? 54 days 90 days 111 days 75 days
- During its first year of operations, Fertig Company had credit sales of $3,000,000, of which $400,000 remained uncollected at year- end. The credit manager estimates that $18,000 of these receivables will become uncollectible. The accounts receivable turnover is 10 times and average collection period is 36.5 days. Assume that average net accounts receivable were $300.000. Explain what these measures tell us. BI V T, TI E LE E H I 99 H E à ला 11 A A OWord(s)Lupo, Inc., has an average collection period of 52 days. Its average daily investment in receivables is $70,300. Assume 365 days per year. a. What is the receivables turnover? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) b. What are annual credit sales? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)A firm has sales of $1.4 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $205,000. What is the average collection period? (Use 365 days in a year. Do not round intermediate calculation. Round the final answer to the 1 decimal place.) Average collection period days 76thjbnn
- Zane Corporation has an inventory conversion period of 76 days, an average collection period of 35 days, and a payables deferral period of 20 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle? Round your answer to two decimal places.days If Zane's annual sales are $2,030,230 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer to the nearest cent.$ How many times per year does Zane turn over its inventory? Assume that the cost of goods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio. Do not round intermediate calculations. Round your answer to two decimal places.xA recent annual report for FedEx contained the following data: Numerator Denominator Numerator Denominator (dollars in thousands) Accounts receivable Less: Allowances Net accounts receivable Net sales (assume all on credit) Required: 1. Determine the receivables turnover ratio and average days sales in receivables for the current year. Note: Use 365 days a year. Enter your answers in thousands not in dollars. Current Year $ 9,416,000 293,000 $9,123,000 $ 69,703,000 Receivables Turnover Ratio Net sales Average net trade accounts receivable Receivables turnover Average Days Sales in Receivables 365 Previous Year $ 88,452,000 397,000 $ 88,055,000 365 1.43 0 times 255.24 daysComparative 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…
- A company has net income of $182,000, a profit margin of 9.90 percent, and an accounts receivable balance of $106,014. Assuming 69 percent of sales are on credit, what is the company's days' sales in receivables? Multiple Choice 21.05 days 40.40 days 30.50 daysA firm has sales of $1.4 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $205,000. What is the average collection period? (Use a 360-day year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Average collection period days Prev 5 of 10 94 Next >A company reports the following: Sales $1,332,250 Average accounts receivable (net) 53,290 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover fill in the blank 1 b. Number of days' sales in receivables fill in the blank 2 days