Parker Company has provided the following data for the most recent year: net operating income, $53,500; fixed expense, $89,000; sales, $190,000; and CM ratio, 75%. What is the company's total contribution margin? a. $161,000 b. $101,000 c. $142,500 d. $190,000 Your boss asks you to compute the company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $126,300, accounts receivable were $97,900, and accounts payable were at $115,100. You also see that the company had sales of $324,000 and that cost of goods sold was $282,000. What is your firm's cash conversion cycle? Round to the nearest day.
Parker Company has provided the following data for the most recent year: net operating income, $53,500; fixed expense, $89,000; sales, $190,000; and CM ratio, 75%. What is the company's total contribution margin? a. $161,000 b. $101,000 c. $142,500 d. $190,000 Your boss asks you to compute the company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $126,300, accounts receivable were $97,900, and accounts payable were at $115,100. You also see that the company had sales of $324,000 and that cost of goods sold was $282,000. What is your firm's cash conversion cycle? Round to the nearest day.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Need Help with this Question
Transcribed Image Text:Parker Company has provided the following data for the most
recent year: net operating income, $53,500; fixed expense,
$89,000; sales, $190,000; and CM ratio, 75%. What is the
company's total contribution margin?
a. $161,000
b. $101,000
c. $142,500
d. $190,000
Your boss asks you to compute the company's cash
conversion cycle. Looking at the financial statements, you see
that the average inventory for the year was $126,300, accounts
receivable were $97,900, and accounts payable were
at $115,100. You also see that the company had sales
of $324,000 and that cost of goods sold was $282,000. What is
your firm's cash conversion cycle? Round to the nearest day.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education