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
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- Medwig Corporation has a DSO of 17 days. The company averages 3,500 in sales each day (all customers take credit). What is the companys average accounts receivable?On average, FurniStyle Ltd. is able to sell its inventory in 30 days. The firm takes 90 days on average to pay for its purchases. On the other hand, its average customer pays with a credit card, which allows the firm to collect its receivables in 6 days. What is the length of the operating cycle?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 $16,866.679. JX Limited has a receivables collection period of 47 days, a payables payment period of 36 days and an inventory holding period of 21 days. What is the length of the operating cycle? A 10 days. 32 days. 62 days. 68 days. B C DGeneral accounting
- 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.4. On average it takes Acme Tool Company 80 days to collect on its sales receivables, and its operating cycle is 290 days. a. How long is cash typically tied up in inventories? (Show computations) b. What would be the likely effect to Acme's operating cycle if the company changes its current policy that sales upon credit must be paid within 3 months, instead requiring payment within 2 months? (No calculations needed, just describe the likely effect on Acme's operating cycle.)I need solution
- On average, your firm sells $32,300 of items on credit each day. The average inventory period is 27 days and your operating cycle is 47 days. What is the average accounts receivable balance? $872,100 $1.292.000 $904,400 $646,000 $1,518,100Medwig Corporation has a DSO of 38 days. The company averages $3,250 in sales each day (all customers take credit). What is the company's average accounts receivable? Assume a 365-day year. Round your answer to the nearest dollar. $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?