What is the Length of the Cash cycle in this case Morrison Construction, a manufacturer of cementproducts, buys raw limestone on credit on July 10. Itprocesses this limestone to make cement powder onJuly 15 and pays cash for the raw limestone on July25. On August 2, it sells the cement powder to aconstruction supply company, and on August 16, itreceives a cash payment for this sale.What is the length of the cash cycle in this case?

Concept of Days Inventory Outstanding (DIO)Days Inventory Outstanding (DIO) measures how long a…

Answered: Morrison Construction, a manufacturer…

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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What is the length of the cash cycle in this case ?
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What is the length of the cash cycle in this case ? General accounting
Macrae Products, a manufacturer of building products, buys raw gypsum on credit on May 16. It processes this gypsum to make dry plaster powder on May 20 and pays cash for the raw gypsum on May 30. On June 7 it sells the dry plaster powder to a chain of hardware stores, and on June 21 receives cash payment for this sale. What is the length of the cash cycle in this case? a.) 23 days b.) 14 days c.) 22 days d.) 8 days
What will be the balance in the general accounting payable accounts after payment?
Ned's Sheds purchases building materials from Timbertown Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned's decides to send in a $2,000 partial payment. a) By what date must the partial payment be sent to take advantage of the cash discount? b) What is the net date? c) If partial payment was sent by the discount date, what is the balance still due on the order?
Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusableprotective containers. Customers pay a deposit for each container received. The deposit is equal to the container’scost. They receive a refund when the container is returned. During 2018, deposits collected on containers shippedwere $850,000.Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January1, 2018, represented deposits of $530,000. In 2018, $790,000 was refunded and deposits forfeited were $35,000.Required:1. Prepare the appropriate journal entries for the deposits received and returned during 2018.2. Determine the liability for refundable deposits to be reported on the December 31, 2018, balance sheet.
Is there any way you can help me do this problem? I'm getting my debit and credit wrong. "On March 1, 2021, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink’s, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,440 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $60 per unit. Brink’s picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. On March 1, 2021, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner…
Could you please help me with this question??? It is really urgent !!! PLEASE!!!! On August 4th Ridge Hill Company sells $700,000 of its accounts receivable to the Cheesecake Factoring Company (CFC). The contractual rights have been transferred to CFC and the company will receive the payments when collected by Ridge Hill. That is, Ridge Hill will still administer the collection of accounts receivable and upon receiving the collection, the company will make payment to CFC. Assume that this transaction meets all three criteria of FASB ASC Topic 860. Below are the relevant information regarding the factoring: • The fee charged for factoring service: $14,000 • Balance retained by CFC: $10,000 Required: 1. Prepare the journal entry to record the transaction assuming that the factoring agreement was without recourse. 2. Prepare the journal entry or entries to record the transaction assuming that the factoring agreement was with recourse. Ridge Hill estimates the recourse obligation at…
Jack Inc. offers a credit term of n/30. This means that the company: a. receives money from the customers 30 days after the of sale of the goods. b. offers a 30-day loan to the suppliers. c. expects to collect receivables every 30 days. d. pays its creditors within 30 days of the purchase of raw materials.
The president of the retailer Prime Products has just approached the company’s bank with a request for a$30,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Becausethe company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cashbudget to help determine whether the loan should be made. The following data are available for the monthsApril through June, during which the loan will be used:a. On April 1, the start of the loan period, the cash balance will be $24,000. Accounts receivable onApril 1 will total $140,000, of which $120,000 will be collected during April and $16,000 will becollected during May. The remainder will be uncollectible.b. Past experience shows that 30% of a month’s sales are collected in the month of sale, 60% in themonth following sale, and 8% in the second month following sale. The other 2% represents bad debtsthat are never collected. Budgeted sales and expenses for the…

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