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Please compute for the letter E to L requirements.

Please compute for the letter E to L requirements.

FINANCIAL ACCOUNTING
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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Please compute for the letter E to L requirements.

Problem 7 You have been asked by the Chief Financial Officer of Coffee Lover Corporation to analyze its liquidity position in 2019. You have gathered the following data from the records of the company and industry published reports (in thousands): Coffee Lover Corporation Industry Average P2,000 Average cash Average trade receivables Average inventory Average trade payables Р3,500 8,000 10,000 7,000 6,500 14,000 20,000 12,000 25,000 Net cash sales
Transcribed Image Text:Problem 7 You have been asked by the Chief Financial Officer of Coffee Lover Corporation to analyze its liquidity position in 2019. You have gathered the following data from the records of the company and industry published reports (in thousands): Coffee Lover Corporation Industry Average P2,000 Average cash Average trade receivables Average inventory Average trade payables Р3,500 8,000 10,000 7,000 6,500 14,000 20,000 12,000 25,000 Net cash sales
Net credit sales 200,000 150,000 Cost of sales 130,000 140,000 112,000 96,000 Net credit purchases The company uses a 360-day a year base. The credit terms offered to customers are 2/10, n/40. Suppliers give credit terms of 3/20, n/40. Required: For Coffee Lover Corporation and the industry, compute the following: a. Receivable turnover b. Collection period c. Inventory turnover d. Inventory days (Days to sell inventory) e. Payable turnover f. Payment period g. Operating cycle h. Net cash cycle i. Net working capital j. Working capital turnover k. Current ratio ab Acid-test (Quick-assets) ratio Please present your solution below.
Transcribed Image Text:Net credit sales 200,000 150,000 Cost of sales 130,000 140,000 112,000 96,000 Net credit purchases The company uses a 360-day a year base. The credit terms offered to customers are 2/10, n/40. Suppliers give credit terms of 3/20, n/40. Required: For Coffee Lover Corporation and the industry, compute the following: a. Receivable turnover b. Collection period c. Inventory turnover d. Inventory days (Days to sell inventory) e. Payable turnover f. Payment period g. Operating cycle h. Net cash cycle i. Net working capital j. Working capital turnover k. Current ratio ab Acid-test (Quick-assets) ratio Please present your solution below.
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