Answer this Problem PROBLEM: 8.7IF THE AVERAGE AGE OF INVENTORY IS 90 DAYS, THE AVERAGEAGE OF ACCOUNTS PAYABLE IS 60 DAYS, AND THE AVERAGE AGEOF ACCOUNTS RECEIVABLE IS 65 DAYS, THE NUMBER OF DAYS INTHE CASH FLOW CYCLE ISDAYS.

Explanation of Cash Flow Cycle: The cash flow cycle, also known as the cash conversion cycle,…

Answered: PROBLEM: 8.7 IF THE AVERAGE AGE OF…

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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If the average age of the inventory is 90 days, the average age of accountspayable is 60 days, and the average age of accounts receivables is 65 days, the number of days in the cash flow cycle isa. 95 daysb. 125 daysc. 215 daysd. 85 days
If an average age of accounts payable is 15 days, the average age of accounts receivables is 60 days, and the average age of inventory is 10 days, the number of days in the operating cash conversion cycle is O A. 70 days O B. 85 days O C. 55 days O D. 60 days
QUESTION 1 From Chapter 14: Balloon Payment Financial (BPF) has an inventory conversion period of 45 days, a receivables collection period of 30 days, and a payables deferral period of 15 days. (a) What is the length of the firm’s cash conversion cycle? (b) If BPF’s annual sales are $2.7 million and all sales are on credit, what is the average balance in accounts receivable? (c) How many times per year does BPF turn over its inventory? (d) What would happen to BPF’s cash conversion cycle if, on average, inventories could be turned over 12 times a year?
pm.6
Financial Accounting
еВook Zane Corporation has an inventory conversion period of 90 days, an average collection period of 34 days, and a payables deferral period of 48 days. Assume 365 days in year for your calculations. a. What is the length of the cash conversion cycle? Round your answer to two decimal places. days b. If Zane's annual sales are $3,454,540 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. How many times per year does Zane turn over its inventory? Assume that the cost of goods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio. Do not round intermediate calculations. Round your answer to two decimal places.
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General Accounting
True answer of cash cycle
7. Assuming a 365-day year, how long (in average days) does the collectibles from customers stay as outstanding accounts receivable if Company Z has a total sale of $1,800,000 of which $200,000 are cash sales and the beginning and ending accounts receivable balances are $30,000 and $50,000, respectively. 11.40 days O 9.13 days 6.84 days 8.11 days
9. Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the production during the current month. The standard price for these raw materials is $5.2 per unit. How much is the materials price variance for the current month if Company S analyzes the variance at the point of purchase? O $200 favorable O $200 unfavorable O $700 favorable O $700 unfavorable 10. T Corporation is authorized to issue 500,000 common stock at $10 par value. As of December 31, 2019 the corporation has 350,000 common stock issued and outstanding. On February 14, 2020, the market price of the stock is $17. On the same date, T Corporation acquired 50,000 stocks at $15. On March 5, 2020, the company reissued 25% of the treasury stocks at $20. Which of the following will be included in the entry to record the transaction on March 5, 2020? Debit Treasury Shares $187,500 Debit Common Stock $250,000 O Credit Additional Paid-in Capital $62,500 O Credit Cash $250,000
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PROBLEM: 8.7 IF THE AVERAGE AGE OF INVENTORY IS 90 DAYS, THE AVERAGE AGE OF ACCOUNTS PAYABLE IS 60 DAYS, AND THE AVERAGE AGE OF ACCOUNTS RECEIVABLE IS 65 DAYS, THE NUMBER OF DAYS IN THE CASH FLOW CYCLE IS DAYS.