Question #1 Using Financial Ratios to Improve Working Capital AccountsBobs accountant found ways that ABC company could generate more cash by improving twoareas, Average Collection period and ABC's inventory turnover. With the following informaticcalculate how much cash ABC company could generate within the next six months if she wereable to improve her average collection period to 25 days and the inventory turnover to 5 times.Revenue: 1,750,000Cost of Sales 1,200,000Trade Receivables 192,000Inventories 250,000

Question #1 Using Financial Ratios to Inprove Working Capital Accounts Bobs accountant found ways that ABC company could generate more cash by improving tv areas, Average Collection period and ABC's inventory turnover. With the following informr calculate how much cash ABC company could generate within the next six months if she w able to improve her average collection period to 25 days and the inventory turnover to 5 tim Revenue: 1,750,000 Cost of Sales 1,200,000 Trade Receivables 192,000

Question #1 Using Financial Ratios to Inprove Working Capital Accounts Bobs accountant found ways that ABC company could generate more cash by improving tv areas, Average Collection period and ABC's inventory turnover. With the following informr calculate how much cash ABC company could generate within the next six months if she w able to improve her average collection period to 25 days and the inventory turnover to 5 tim Revenue: 1,750,000 Cost of Sales 1,200,000 Trade Receivables 192,000

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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Q4 Libscomb Technologies' annual sales are $6,743,847 and all sales are made on credit, it purchases $3,304,291 of materials each year (and this is its cost of goods sold). Libscomb also has $535,216 of inventory, $1,475,000 of accounts receivable, and $1,400,000 of accounts payable. Assume a 365 day year. What is Libscomb’s Receivables Period (in days)?
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You have been asked by your CEO to evaluate, analyse and calculate commonly used ratios relating to a company’s profitability, liquidity, solvency and management efficiency. Requirement: Complete the balance sheet and sales data (fill in the blanks), using the following financial data: Debt/net worth 60% Acid test ratio 1.2 Asset turnover 1.5 times Day sales outstanding in accounts receivable 40 days Gross profit margin 30% Inventory turnover 6 times Balance sheet Cash ________ Accounts…
Fast pls solve this question correctly in 5 min pls I will give u like for sure Savtk Hanse, Inc., has a cash cycle of 45 days, an operating cycle of 66 days, and an inventory period of 28.5 days. The company reported cost of goods sold in the amount of $345,000, and credit sales were $568,000. What is the company’s average balance in accounts payable and accounts receivable? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Question (6) Post Company's 20Y1 net sales were $10,000,000, cash cost of goods sold was $5,500,000, and inventory days on hand was 62 days. The company projects its 20Y2 net sales will be $11,000,000, cash cost of goods sold will be $6,100,000, and inventory days on hand will be 57 days. What would be the cash flow impact of the five-day shortening of inventory days on hand? OA decrease of $75,342. O An increase of $75,342. OA decrease of $83,562. O An increase of $83,562.
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Q2 Libscomb Technologies' annual sales are $5,433,041 and all sales are made on credit, it purchases $3,986,576 of materials each year (and this is its cost of goods sold). Libscomb also has $581,228 of inventory, $530,966 of accounts receivable, and $416,773 of accounts payable. Assume a 365 day year. What is Libscomb’s Inventory Period (in days)?
3 Quarter e Cash B A SoGood Candy Company is evaluating its quarterly working capital needs. Using the information below, calcuate the working capital, permanent working capital, and temporary working capital needs for the company. Accounts Receivable Inventory Accounts Payable Working capital Permanent W/C Temporary W/C 1 708 450 650 900 1 2 3 Annual Percentage Rate(APR) 4 Effective Annual Rate (EAR) 2 890 750 550 850 3 670 1200 700 1000 4 1250 800 400 1145 To meet the needs of temporary working capital, SoGood Candy Company has decided to issue commercial paper which will mature in 8 months. The commercial paper was issued for 1.6 millin and Othey received 1.5 million. What is the effective annual rate that they will pay for this loan?
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Problem No. 2 Receivables Investment McEwan Industries sells on terms of 3/10, net 25. Total sales for the year are $1,465,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 80 days after their purchases. Assume 365 days in year for your calculations. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. a. What is the days sales outstanding? Round your answer to two decimal places. b. What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations. c. What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places. d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 80 days? Round your answers to two decimal places. Do not round intermediate calculations. e. What would…