Cash cycle in this case? Morrison Construction, a manufacturer ofcement products, buys raw limestone on crediton July 10. It processes this limestone to makecement powder on July 15 and pays cash for theraw limestone on July 25. On August 2, it sellsthe cement powder to a construction supplycompany, and on August 16, it receives a cashpayment for this sale.What is the length of the cash cycle in thiscase?

Key Concepts1. Cash Cycle (Cash Conversion Cycle)- This is the length of time between when a company…

Answered: Morrison Construction, a manufacturer…

Individual Income Taxes

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Author:Hoffman

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Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...

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What is it's cash conversion cycle for this accounting question?
Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory Conversion Period = 59 days Receivables Collection Period = 19 days Payables Deferral Period = 41 days Please explain process and show calculations.
What is the length of the firm's cash conversion cycle for this accounting question?
The accounts receivable balance on the records of of P38,000 were written off during the year as uncollectible. eud was P283,000. In going over the records, you found accounts reccivable REQUIRED: How much cash was received from the sale of the machine? during the year ended December 31, 2020. The accounts receivable at year- REQUIRED: How much cash was collected on credit sales during the year. Luneta Company of January 1, 2020. Credit sales were recorded at P1,060.000 P245,000 on durine p283.000. In going over the records, you found accounts reccivable PEOUIRED: How much cash was collected on credit sales during the year 2020 ? The manager of the Pansol Company is planning for the qaurter ending Narch 31, 2020, and wants to know how much cash must be paid for merchandise purchases. The inventory of merechandise is to be deereased by P46,000 during the quarter. Sales have been estimated at P360,000. The cost of saies is equal to 30% of sales. Accounts payable is expected to inerease…
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Discuss Followings: (a) Discuss a total of four (4) factors that are relevant in determining how much cash a business should hold. (b) Discuss the correct interpretation of the operating cash cycle (OCC), whether businesses should try to increase or decrease the OCC, and why. (c) A supplier of electronic components is offering credit terms whereby buyers have a maximum period of 68 days in which to pay for purchases. However, if customers pay within 15 days they receive a 5% discount on the invoice amount. Calculate the exact interest rate implied by the credit terms.
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(1) Use the information below to compute the days in the cash conversion cycle for each company. (2) Which company is more effective at managing cash based on this measure? Days' sales in accounts receivable Days' sales in inventory Days' payable outstanding Required 1 Required 2 Sparta Company 36 22 29 Complete this question by entering your answers in the tabs below. Cash conversion cycle Athens Company 49 26 34 Use the information below to compute the number of days in the cash conversion cycle for each company. Sparta Athens Company Company
Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2024, the company had accounts receivable of $980,000. Lonergan needs approximately $600,000 to capitalize on a unique investment opportunity. On July 1, 2024, a local bank offers Lonergan the following two alternatives: a. Borrow $600,000, sign a promissory note, and assign the entire receivable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of receivables collected plus 8% interest on the unpaid balance of the note at the beginning of the period. b. Transfer $650,000 of specific receivables to the bank without recourse. The bank will charge a 2% factoring fee on the amount of receivables transferred. The bank will collect the receivables directly from customers. The sale criteria are met. Required: 1. Prepare the journal entries that would be recorded on July 1 for: a. alternative a. b. alternative b. 2. Assuming that…
(1) Use the information below to compute the days in the cash conversion cycle for each company. (2) Which company is more effective at managing cash based on this measure? Sparta Company Athens Company Days' sales in accounts receivable 52 65 Days' sales in inventory 30 34 Days' payable outstanding 37 42 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the information below to compute the number of days in the cash conversion cycle for each company. Cash conversion cycle Sparta Company Athens Company > Required 1 Requiredn
Karakaraka Boom’s cash balance on January 1, 2021 was ₱40,000. The following were the transactions that affected the cash during the period: Cash Receipt from loan obtained from a bank, ₱360,000 Payments for utilities expenses, ₱40,000 Payments to suppliers for the purchase of inventory, ₱240,000 Payment for the acquisition of equipment, ₱400,000 Collections from customers for the sale of goods, ₱1,160,000 Cash receipt from additional investment by the owner, ₱40,000 Payments for employee salaries, ₱280,000 Payment for rent expense, ₱140,000 Cash disbursements for drawings by the owner, ₱120,000 Requirement: Prepare a direct method Statement of Cash

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