?? 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 Age of Inventory:The age of inventory represents the average number of days a company…

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

See similar textbooks

Similar questions

Solve this problem
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?
If the average age of the inventory is 90 days, the average age of accounts payable is 65 days, and the average age of accounts receivable is 60 days, how many days would be the net cash cycle?
Mark's Manufacturing's average age of accounts receivable is 45 days, the average age of accounts payable is 40 days, and the average age of inventory is 69 days. Assuming a 365-day year, what is the length of its cash conversion cycle? a. 78 days b. 74 days c. 70 days d. 63 days e. 67 days
pm.6
Assume the average management cost per account per year is $200 and the average fees earned per account per year is $170. The average annual size of account is $1800. What is the average implicit interest rate (round to two decimals)? Select one: a. 4.86% b. 1.67% c. 15% d. -1.67%
Financial Accounting
20. If the average collection period is 60 days, what is the accounts receivable turnover? a. 6.0 times b. 6.1 times C. 12.2 times d. None of these
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.
General Accounting

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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

SEE MORE TEXTBOOKS

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.