Prestige Company has determined the following information for its recent fiscal year: Days inventory outstanding 50.6 days Days payable outstanding 85.9 days Days accounts receivable outstanding 42.2 days Compute the length of Prestige Company's cash conversion cycle. O 178.7 days O 128.1 days O 7.5 days O 94.3 days O 6.9 days

Prestige Company has determined the following information for its recent fiscal year: Days inventory outstanding 50.6 days Days payable outstanding 85.9 days Days accounts receivable outstanding 42.2 days Compute the length of Prestige Company's cash conversion cycle. O 178.7 days O 128.1 days O 7.5 days O 94.3 days O 6.9 days

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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ces Given the following information, complete the balance sheet shown next. Collection period Days' sales in cash Current ratio Inventory turnover Liabilities to assets Payables period Assets Current assets: Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets (All sales are on credit. All calculations assume a 365-day year. The payables period is based on cost of goods sold.) Note: Round your answers to the nearest whole dollar. Liabilities and shareholders' equity Current liabilities: 71 days 33 days 2.2 times Accounts payable Short-term debt Total current liabilities Long-term debt Shareholders' equity Total liabilities and equity 5 65% 35 days $ $ 1,300,000 2,000,000 7,000,000
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Subject: accounting
Accounts Receivable Turnover and Average Collection Period The Forrester Corporation disclosed the following financial information (in millions) in its recent annual report: Previous Year Current Year Net Sales $157,105 $171,669 Beginning Accounts Receivable (net) 11,899 11,369 Ending Accounts Receivable (net) 11,369 11,544 Calculate the accounts receivable turnover ratio for both years. (Round your answer to two decimal points.) Calculate the average collection period for both years. (Use 365 days for calculation. Round to the nearest whole number.) Is the company's accounts receivable management improving or deteriorating? Previous Year Current Year a. Accounts receivable turnover Answer Answer b. Average collection period Answer Answer c. The company's receivable management Answer
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