KL Company’s sales are $1,000,000 and 80% of those sales are on credit. The beginning and ending accounts receivable balances are $100,000 and $140,000, respectively. What is the company’s average collection period? 1.34 days 2.55 days 3.44 days 4.110 days

Q: Tripod Company makes all sales on account. During the current year, Tripod has an average accounts…

A: Accounts receivable turnover is calculated by dividing the Net credit sales by the Average accounts…

Q: Sanders Prime Time Company has annual credit sales of $1,800,000 and accounts receivable of…

A: Average collection period (ACP) is the time taken to collect the cash from its accounts receivables.…

Q: A company reports the following: Sales $399,675 Average accounts receivable (net) 54,750 Determine…

A: Accounts receivable turnover is computed by dividing the sales with the average accounts receivable…

Q: ABCD Corporation has credit sales of $10,640,000 and receivables of $1,520,000. a. What is the…

A: Receivables turnover = Credit sales / Accounts receivable Average collection period = 365/…

Q: If Cactus, Inc. has annual sales of $83,000, average accounts payable of $30,000, and average…

A: Given: Annual sales = $83,000 Average accounts receivables = $25,000

Q: The financial statements of Marigold Manufacturing Company report net sales of $1278000 and accounts…

A: In order to compute the average collection period of account receivable, we need to first determine…

Q: Oman company had $180,000 sales on credit last year. The accounts receivable balance was $14,000…

A: Given: Credit sales = $180,000 Accounts receivables = $14,000

Q: A 33- day days sales outstanding is maintained by the Bebop Corporation. Each day, the company…

A: Days sales outstanding is one of important ratio used in business to evaluate efficiency of…

Q: A firm has $400,000 in credit sales and $100,000 in accounts receivable.Compute accounts receivable…

A:

Q: Assuming 77 percent of sales are on credit, what is the company's days' sales in receivables?

A: Information Provided: Net Income = $191,000 Profit Margin = 9.10% Accounts Receivable = $106,919…

Q: Total sales at a store are $1,000,000 and 80% of those sales are on credit. Thebeginning and ending…

A: Accounts receivable:   Accounts receivable refers to the amount to be received within a short…

Q: The following information relates to ReDo Corporation: $28,184,000 $316,199,000 $64,115,000 What is…

A: Receivables collection period is the average time required to receive payment from debtors. It is…

Q: Acompany has net sales of $1,340,000, beginning accounts receivable of $500,000, and ending accounts…

A: Days to Collect Accounts Receivable means A company wants to assess the effectiveness of a company's…

Q: Al Sharif Company's Average Accounts Receivables is OMR 360,000 and total Sales is OMR 1,200,000.…

A: Credit sale=Total sale×100-Cash sale %=OMR 1,200,000×100-40%=OMR 720,000

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: A company’s accounts receivable balance after posting net collections from customers is $150,000.…

A: Net realizable value of the accounts receivable = Accounts receivable - Allowance for doubtful…

Q: Company Abel has total sales of $375,000, of which, $125,000 represents cash sales. Its annual…

A: Accounts receivable is the amount of money not paid by customers that is due to the organization for…

Q: XYZ Company has the following information:   Beginning accounts receivable: $50,000 Ending…

A: The efficiency with which a business collects its accounts receivable within a certain time period…

Q: Twist Corp. has a current accounts receivable balance of $357,615. Credit sales for the year just…

A: Given Information Current Accounts Receivable balance = $357,615 Credit Sales for year end…

Q: Batik Clothing Store had a balance in the Accounts Receivable account of P390,000 at the beginning…

A: The average collection period is calculated by dividing the average balance of accounts receivable…

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: The financial statements of Georgi Manufacturing Company report net sales of $595,000 and accounts…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: The financial statements of Bolero Manufacturing Inc. report net credit sales of $900,000 and…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: The Carhart Corporation sells on credit terms of net 25. Its accounts are, on average, 8 days past…

A: The amount of money that is owed to a company by its customers for products or services that have…

Q: Sweetens Cove, Incorporated, has weekly credit sales of $69400 and the average collection period is…

A: Company’s receivables can be expressed as its average daily sales multiplied by its average…

Q: Days’ Sales in Receivables A company has net income of $265,000, a profit margin of 9.3 percent, and…

A: 1. days’ sales in receivables  = 2. Profit Margin =

Q: A company has net income of $182,000, a profit margin of 9.90 percent, and an accounts receivable…

A: Days sales in receivables = Accounts receivable/credit sales *365

Q: XYZ's receivables turnover is 4x. The accounts receivable at year-end are $600,000. The average…

A: Receivable turnover ratio is calculated as follows: = Net credit sales / Average account receivable

Q: A company reports the following: Sales $1,057,770 Average accounts receivable (net) 83,950 Determine…

A: Accounts receivable turnover ratio = Net credit sales / Average Accounts Receivables where, Average…

Q: Rayhan Company has an average collection period of 55 days. The annual sales is 8,500,000. What is…

A: The average collection period indicates the period between the sale and collection/ receipt of money…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.