Montauk Oil Co. reports these account balances at December 31, 2014:Accounts Payable$117,000Land$207,000Notes Payable$267,000Equipment$167,000Cash$87,000Accounts Receivable$107,000Buildings$247,000Capital Stock$347,000$77,000Retained EarningsOn January 2, 2015, Montauk Oil collected $57,000 of its accounts receivable andpaid $27,000 of its accounts payable.Required information in a trial balance prepared at December 31, 2014 the total ofthe debit column is:A. $1,055,000B. $815,000C. $1,603,000D. $728,000

Approach to solving the question:To determine the total of the debit column in a trial balance…

Answered: Montauk Oil Co. reports these account…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC Company Ltd. has annual revenues of $750 million and annual cost of goods sold of $450 million. Annual cash flows from operations are $51 minion, while daly credit sales were $163,548. It published its annual report for the financial year 2021-22 ending, with the following balance sheet items as at 31 march 2022: Ending inventory: $82 million Ending accounts receivable: $56 million Ending accounts payable: $43 million ABC Co. Lid, treasurers forecast the following balance pattern for monthly collections: Month 0: 5% Month 1: 40% Month 2 35% Month 3: 15% Month 4: 5% Required: a) Calculate the Cash Conversion Cycle (CCC) for the company and discuss measures the company could adopt to shorten its CCC. b) What percentage of outstanding sales proceeds are yet to be collected as receivables 3 months after the sales were invoiced?
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