What is the length of the cash cycle in this case ? Macrae Products, a manufacturer of building products,buys raw gypsum on credit on May 16. It processes thisgypsum to make dry plaster powder on May 20 and payscash for the raw gypsum on May 30. On June 7 it sellsthe dry plaster powder to a chain of hardware stores, andon June 21 receives a cash payment for this sale. Whatis the length of the cash cycle in this case?a.) 23 daysb.) 14 daysc.) 22 daysd.) 8 days

Step 1: Given Value for Calculation Payment for raw materials: May 30Receipt of payment for sale:…

Answered: Macrae Products, a manufacturer of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
Nonnas Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February?
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
Salty Frozen Yogurt purchases a new refrigeration system for $100,000 on 1/1/21. Salty pays an initial deposit of $40,000 on 1/1/21. They will pay the remaining $60,000 by making equal- sized payments at the end of each year for three years - $20,000 on 12/31/21, $20,000 on 12/31/22 and $20,000 on 12/31/23. If Şalty's borrowing costs are 8%, they should debit the PP&E account for on 1/1/21.
2A. Colby's Manufacturing Company management found that during the last year it took an average of 43 days to pay its suppliers, whereas it took 45 days to collect its receivables. The company’s days’ sales in inventory were 58 days. What was Colby's cash conversion cycle? Colby's cash conversion cycle is________days.
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Belts are shipped to the buyer on June 4 at a cost of $5500.00. The terms on invoice are 3/10, n/60. When is the last day the buyer can get the cash discount? If the buyer decides to pay for the shipment on June 30. What is the net amount to be paid?
Oakwood Plowing Company purchased two new plows for the upcoming winter. In 200 days, Oakwood must make a single payment of $23,200 to pay for the plows. As of today, Oakwood has $22,500. Assume the Oakwood puts the money in a bank today, what rate of interest will it need to pay off the plows in 200 days?
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A building contractor gives a $15,000 promissory note to a plumber who has loaned him $15,000. The note is due in 9 months with interest at 8%. Three months after the note is signed, the plumber sells it to a bank. If the bank gets a 9% return on its investment, how much will the plumber receive? Will it be enough to pay a bill for $ 15,285? How much will the plumber receive?

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