Question 17 Ferry's Furniture Outlet has an accounts receivable period of 50.15 days and an accounts payable period of 39.43 days. The company turns over its inventory 5.41 times per year. What is the length of the company's operating cycle? Assume 365 days per year. O 117.62 days O 28.04 days O 106.90 days 5 pts 78.19 days O 89.58 days

Question 17 Ferry's Furniture Outlet has an accounts receivable period of 50.15 days and an accounts payable period of 39.43 days. The company turns over its inventory 5.41 times per year. What is the length of the company's operating cycle? Assume 365 days per year. O 117.62 days O 28.04 days O 106.90 days 5 pts 78.19 days O 89.58 days

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 30MCQ

See similar textbooks

Similar questions

Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May, and June if 60% of sales are collected in the month of sale, 30% are collected the month after the sale, and 10% are collected the second month after the sale?
Please help me
Captain Kurt's Enterprises has a receivables turnover rate of 12.8, a payables turnover rate of 11.9, and an inventory turnover rate of 15.6. What is the length of the firm's operating cycle? a. 24.89 days b. 39.80 days c. 51.92 days d. 62.56 days e. 83.77 days
On average, your firm sells $32,300 of items on credit each day. The average inventory period is 27 days and your operating cycle is 47 days. What is the average accounts receivable balance? $872,100 $1.292.000 $904,400 $646,000 $1,518,100
What is the correct answer? A,B,C or D?
A company has an average age of inventory (AAI) 55 days; average collection period (ACP)20 days and average payment period (APP) is 10 days. Calculate the following details of thecompany.A. Operating Cycle (OC)B. Cash Conversion Cycle (CCC)
JC Penney has sales of $897,400, costs of goods sold of $628,300, inventory of $208,400, and accounts receivable of $74,100. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? 84.76 days 121.07 days 74.19 days 151.21 days 138.46 days
Assume a firm's inventory level of $11,000 represents 32 days' sales. Required: a. What is the annual cost of goods sold? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to whole number.) b. What is the inventory turnover ratio? (Round your answer to 2 decimal places.) Annual cost of goods sold Inventory turnover ratio times per year
Consider the following financial statement information for the Emma Corporation: Item Inventory Accounts receivable Accounts payable Net sales Cost of goods sold Beginning $ 10,600 5,600 7,800 Operating cycle Cash cycle $86,000 66,000 All sales are on credit. Calculate the operating and cash cycles. (Use 365 days a year. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Ending $11,600 5,900 8,200 days days
"On average, a firm sells $2,500,000 in merchandise a month. Its cost of goods sold equals 80 percent of sales, and it keeps inventory equal to one-half of its monthly cost of goods on hand at all times. If the firm analyzes its accounts using a 360-day year, what is the firm's inventory conversion period?" Group of answer choices a. 360 days b. 180 days c. 30 days d. 15 days e. 10 days
A retailer ordered merchandise totaling $128,115.23 with terms 3.5%/10 net 40. What is the effective rate of return? Assume there are 365 days in a year.
12) Oman ceramics LLC has average inventory conversion period of 72 days, average payment period of 62.5 days, cash conversion cycle of the company is 90 days. Find out the Average collection period of the company? a. + 96.5 days b. + 80.5 days c. + 99.5 days d. – 80 days