Johnson Electronics turns over its inventory in 35 days. The company collects receivables on average in 7 days, while it takes 40 days to pay its suppliers. What is the length of the operating cycle? a. 42 days b. 35 days c. 47 days d. 70 days

Johnson Electronics turns over its inventory in 35 days. The company collects receivables on average in 7 days, while it takes 40 days to pay its suppliers. What is the length of the operating cycle? a. 42 days b. 35 days c. 47 days d. 70 days

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

See similar textbooks

Related questions

Q: Provide answer general accounting

A: Step 1: Define Absorption CostingIn cost accounting, absorption costing refers to the proper…

Q: AKA works in an accounts payable department of a major retailer. She has attempted to convince her…

A: Explanation of Cash Discount Terms (e.g., 3/25, net 90):Cash discount terms specify the incentives…

Q: I need correct solution this question

A: Hope this helps

Q: What is the degree of opereting leverage?

A: Step 1: Meaning of Degree of Operating LeverageDegree of Operating Leverage shows the operating…

Q: manage to solve it. tag. general account

A: What are Equivalent Units?In process costing, equivalent units measure the amount of work done…

Q: Hi expert please give me answer general accounting

A: Step 1: Definition of Overhead AllocationOverhead allocation refers to the process of distributing…

Q: Summit manufacturing incurred solve this accounting questions

A: Step 1: Definition of Cost Per UnitCost per unit is the total cost incurred to produce a single unit…

Q: General accounting

A: Step 1: Define Gross Pay vs. Net PayThe gross pay an employee receives is the amount of their hourly…

Q: Hi expert please give me answer general accounting question

A: Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…

Q: Financial Accounting

A: Step 1: Define Discount NoteA discount note is a short-term debt instrument issued at a discount to…

Q: Need help with this accounting questions

A: Step 1:First calculate the total direct material variance: Total direct material variance =…

Q: Rose company has a target rate of solve this question general Accounting

A: The formula for ROI (Return on Investment) is: ROI = Sales Margin × Capital Turnover Given:ROI =…

Q: First month and incurred the following costs ?

A: Step 1: Introduction to cost accountingThe field of accounting known as cost accounting is utilized…

Q: Hii expert please provide correct answer general Accounting

A: Step 1: Define InventoryInventory can be defined as a current asset because it can be converted into…

Q: ROA 7.1 & atr 1.9

A: To calculate the return on equity (ROE), we can use the following formula: ROE = ROA × (1 +…

Q: A firm reported wages expense of $607 million and cash paid for wages of $578 million. What was the…

A: Explanation of Wages Expense: This represents the total amount of employee compensation that a…

Q: What is its ROE ?

A: The question requires the determination of the ROE. Return on equity (ROE) is a measure of a…

Q: Provide correct answer general accounting

A: Step 1: Define Markup"Markup" represents the profit proportion included in the selling price of the…

Q: Don't use ai given answer general accounting questions

A: Step 1: Define Average Collection PeriodAverage collection period determines the time period that a…

Q: Compute gross margin under absorption costing? General accounting

A: Step 1: Key InformationFrom the provided table:Selling Price per Unit: $60.Costs per Unit:Direct…

Q: On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials…

A: To calculate the cost per equivalent unit of conversion, follow these steps: Step 1: Calculate the…

Q: Marin Company follows the practice of pricing its inventory at LCNRV, on an individual item basis.…

A: Key Information ProvidedFor each inventory item, we are given:Quantity: Number of units of the…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Straight-Line DepreciationStraight-Line Depreciation: A method where the cost…

Q: The accountant for Murphy Company prepared the following analysis of its inventory at year-end: Item…

A: Key Information ProvidedFor each inventory item, the following data is given:Units: Number of units…

Q: Don't use ai provide answer financial accounting

A: Step 1: Define Reserve RatioThe reserve ratio is the percentage of deposits that a bank is required…

Q: Nadal Inc. has two temporary differences at the end of 2013. The first difference stems from…

A: To address the problem, we need to compute the journal entry for income tax expense, deferred income…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Straight-Line DepreciationStraight-Line Depreciation: A method where the cost…

Q: Bell Inc. took a physical inventory at the end of the year and determined that $840,000 of goods…

A: To determine the correct inventory balance at the end of the year, we need to adjust the physical…

Q: Sjjsjejejrki

A: Approach to solving the question:Understanding and Analysis Detailed explanation:From my…

Q: I want to correct answer general accounting

A: Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…

Q: Printpro services is evaluating the purchase of a new solve this accounting questions

A: To calculate the expected annual increase in net income from this investment, we need to determine…

Q: Fill in the missing information from the balance sheet solution general accounting question

A: The balance sheet must always balance, meaning that Total Assets = Total Liabilities + Equity. This…

Q: Calculate it's opreting cash flow? General accounting

A: Step 1: Definition of Operating Cash Flow (OCF)Operating Cash Flow (OCF) is the cash generated by a…

Q: Total Assets?

A: Explanation of Owner's EquityOwner's equity represents the residual interest in the assets of a…

Q: Packard Corporation reported a taxable income of $1,000,000 in 20X3 and paid federal income taxes of…

A: Key Adjustments to Taxable IncomeE&P is calculated by adjusting taxable income for certain items…

Q: What is the price earning ratio? General accounting

A: Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…

Q: Please provide this question solution general accounting

A: Let's include Social Security and Medicare deductions in the calculation. These are standard…

Q: What was the chance in wages?

A: The change in wages payable can be calculated using the formula: Change in Wages Payable = Wages…

Q: Need help with this accounting questions

A: Step 1: Definition of Cost of Merchandise Sold (COMS)The cost of merchandise sold (COMS) is the…

Q: Please provide this question solution general accounting question

A: Step 1: Definition of Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) Ratio measures the…

Q: Please provide this question solution general accounting

A: Information Given:Number of shares: 200,000Debt to be issued: $500,000Interest rate on debt:…

Q: general account

A: Step 1: Key FormulaThe formula to calculate EUP for conversion costs is: EUP…

Q: Wyly Inc. produces and sells a single product. The selling price of the product is $170.00 per unit,…

A: To calculate the break-even sales in dollars, we use the following formula: Break-even Sales…

Q: What is value of total assets on these general accounting question?

A: Step 1: Define Total AssetsTotal Assets represent the total resources owned by a company and are…

Q: General accounting

A: Step 1: Define Gross ProfitIn accounting and business terms, the Gross profit is the return of a…

Q: Using the following information, prepare a Variable Costing Income Statement. Sales $5,000,000…

A: Detailed explanation:A variable income statement is a financial statement that separates a company's…

Q: The following information is provided for the year: Actual direct labor hour's worked Budgeted…

A: Understanding the ProblemIn this question, the company uses normal costing to apply overhead to…

Q: Kindly help me with accounting questions

A: Step 1: Define Variance AnalysisVariance analysis is the comparison of standard costs and the actual…

Q: Can you please solve this financial accounting question?

A: Step 1: Define Payday LoanA payday loan is a debt availed for a short span and is remitted along…

Q: Get correct answer general accounting question

A: To calculate the Return on Equity (ROE), we use the formula: ROE = Net Income / Equity We are…

Question

Johnson electronics turns over its inventory

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A Mikey's sells $119,500 of its accounts receivable to factors at a 1% discount. The firm’s average collection period is one month. What is the dollar cost of the factoring service? Dollar-cost of the factoring service $_________ per month
Atlas Builders deals strictly with five customers. The average amounts these customers pay per month are $26,800, $32,900, $87,500, $211,800, and $462,500. The smaller two payments have a collection delay of three days while the others only have a one-day delay. Assume each month has 30 days. What is the amount of the average daily receipts? $27,383.33 $25,446.67 $29,833.3 $16,166.67 $16,866.67
Davis and Davis have expected sales of $490, $465, $450, and $570 for the months of January through April, respectively. The accounts receivable period is 28 days. What is the accounts receivable balance at the end of March? Assume a year has 360 days. a. $450 b. $420 c. $440 d. $426
Assume that a company’s Inventory Turnover is 15. What does that mean? It takes about 15 days for inventory to move from the company to its customers. Receivables turn over 15 times per year. Inventories turn over 15 times per year. The average account receivable is collected about 15 days after the credit sale occurs.
Alpha Company makes all its sales on account. Accounts receivable payment experience is as follows: Percent paid in the month of sale 35% Percent paid in the month after the sale 54% Percent paid in the second month after the sale 6% Alpha provided information on sales as follows: Мay $150,000 June $125,000 July $136,000 August (expected) $142,000 How much of May's sales are expected to be uncollectible?
A company has expected sales for January through April of $9,800, 59, 500, $13, 800, and $9,500, respectively. Assume each month has 30 days and the accounts receivable period is 36 days. How much does the company expect to collect in the month of May?
Alpha Company makes all its sales on account. The accounts receivable payment experience is as follows: Percent paid in the month of sale 35% Percent paid in the month after the sale 54% Percent paid in the second month after the sale 6% Alpha provided the following information on sales: May $150,000 June $125,000 July $136,000 August (expected) $142,000 How much of June's credit sales is expected to be collected in the month of July? a. $30,000 b. $60,000 c. $36,000 d. $67,500 e. $80,000
Bha
4
Baker Industries has a 45 day accounts receivable period. The estimated quarterly sales for this year, starting with the first quarter, are $1,200, $1,400, $1,900 and $3,200, respectively. How much does the firm expect to collect in the third quarter? Assume that a year has 360 days. A)$1,300 B)$1,650 C)$1,400
Assume Laksko's has credit sales of $462,400 in March, $507,500 in April, and $550,200 in May. Also assume that 64 percent of sales are collected in the month of sale, 35 percent are collected in the following month, and the remainder are never collected. Credit purchases are $224,600 in March, $236,700 in April, and $252,700 in May. Credit purchases are paid in 30 days. Interest is $12,400 a month, wages and other expenses are $64,400 a month. Fixed assets purchases of $119,500 are scheduled for April with additional purchases of $56,400 in May. The April 1 cash balance was $321,060 and taxes of $180,000 must be paid on April 15. What is the cash balance at the end of May?
Bluewater, Inc. has the following estimated quarterly sales for next year. The accounts receivable period is 60 days. What is the expected accounts receivable balance to the nearest dollar at the end of the third quarter? Assume that each month has 30 days. Q2 Q3 Q4 $1,300 $1,425 $2,200 Ⓒa. $800 b. $367 c. $950 d. $733 Qe. $867 Q1 Sales $1,850