Problem 8.7 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.

Step 1: The cash flow cycle can be calculated using the formula - Cash flow Cycle = Average age of…

Answered: PROBLEM: 8.7 IF THE AVERAGE AGE OF…

Principles of Accounting Volume 1

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Chapter9: Accounting For Receivables

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Problem 14MC: Ancient Grains Unlimited has an accounts receivable turnover ratio of 3.34 times. The net credit...

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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. Right Answer
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.
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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?
Twin peaks cash conversion cycle is how many days?
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
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If the days inventory is 50, days receivable is 17 and days payable is 25 and assuming 365 days in a year, then the cash conversion cycle is equal to: a. 92 Days b. 58 Days c. 42 Days d. 67 Days e. 75 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
22) A firm has the following data: Inventory conversion period = 75 days Average collection period = 32 days Payables deferral period = 45 days What is the firm's cash conversion cycle? 1. 5 days. 2. 40 days. 3. 62 days. 4. 88 days. 5. 15 days.

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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.