Practice B. I Total asset is PHP750,000. Sales is PHP1,500,000. What is the total asset turnover? 2. Accounts receivable turnover is 4. What is the average collection period assuming annual data are used? What is the average collection period assuming quarterly data are used? 3. Sales for the year amount to PHP100,000. Accounts receivable amount to PHP12,000. What is the average collection period assuming annual data are used? What is the average collection period assuming quarterly data are used? 4. The quick ratio is 1.7 while the current ratio is 2.5. The current liabilities amount to PHP5,000. Cost of goods sold is PHP52,500. What is the inventory turnover? Average age of inventory? 5. Beginning inventory is PHP2,000 while ending inventory is PHP5,000. Cost of goods sold is double the ending inventory and accounts payable is PHP4,000. What is accounts payable turmover? Average payment period? 6. Ending inventory is PHP13,000 while accounts payable is PHP2,500. Purchases were half the ending inventory. What is accounts payable turnover? Average age of payables? 7. Current assets amount to PHP30,000 while noncurrent assets are PHP50,000. Sales amount to PHP200,000. What is the total asset turnover? 8. Based on your answers from letters c, d, and e, what is the operating cycle of the company? Cash conversion cycle?
Practice B. I Total asset is PHP750,000. Sales is PHP1,500,000. What is the total asset turnover? 2. Accounts receivable turnover is 4. What is the average collection period assuming annual data are used? What is the average collection period assuming quarterly data are used? 3. Sales for the year amount to PHP100,000. Accounts receivable amount to PHP12,000. What is the average collection period assuming annual data are used? What is the average collection period assuming quarterly data are used? 4. The quick ratio is 1.7 while the current ratio is 2.5. The current liabilities amount to PHP5,000. Cost of goods sold is PHP52,500. What is the inventory turnover? Average age of inventory? 5. Beginning inventory is PHP2,000 while ending inventory is PHP5,000. Cost of goods sold is double the ending inventory and accounts payable is PHP4,000. What is accounts payable turmover? Average payment period? 6. Ending inventory is PHP13,000 while accounts payable is PHP2,500. Purchases were half the ending inventory. What is accounts payable turnover? Average age of payables? 7. Current assets amount to PHP30,000 while noncurrent assets are PHP50,000. Sales amount to PHP200,000. What is the total asset turnover? 8. Based on your answers from letters c, d, and e, what is the operating cycle of the company? Cash conversion cycle?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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NOTE: answer only the last number 8.
Transcribed Image Text:GIVEN FORMULAS:
Sales
Accounts receivable turnover =
Accounts Receivable
365
Average collection period =
Accounts Receivable Turnover
Cost of goods sold
Inventory turnover =
Inventory
365
Average age of inventory =
Inventory Turnover
Purchases
Accounts payable turnover =
Inventory
365
Average payment period =
Accounts Payable Turnover
Operating Cycle = Average Collection Period + Average Age of Inventory
Cash Conversion Cycle = Average collection period + Average age of inventory -Average age of payables
OR
Cash Conversion Cycle = Operating Cycle -Average Age of Payables
%3D
Transcribed Image Text:Practice B.
I Total asset is PHP750,000. Sales is PHPI,500,000. What is the total asset turnover?
2. Accounts receivable turnover is 4. What is the average collection period assuming annual
data are used? What is the average collection period assuming quarterly data are used?
3. Sales for the year amount to PHP100,000. Accounts receivable amount to PHP12,000.
What is the average collection period assuming annual data are used? What is the average
collection period assuming quarterdy data are used?
4. The quick ratio is 1.7 while the current ratio is 2.5. The current liabilities amount to
PHP5,000. Cost of goods sold is PHP52,500. What is the inventory turnover? Average
age of inventory?
5. Beginning inventory is PHP2,000 while ending inventory is PHP5,000. Cost of goods
sold is double the ending inventory and accounts payable is PHP4,000. What is accounts
payable turmover? Average payment period?
6. Ending inventory is PHP13,000 while accounts payable is PHP2,500. Purchases were
half the ending inventory. What is accounts payable turnover? Average age of payables?
7. Current assets amount to PHP30,000 while noncurrent assets are PHP50,000. Sales
amount to PHP200,000. What is the total asset turnover?
8. Based on your answers from letters c, d, and e, what is the operating cycle of the
company? Cash conversion cycle?
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