Required: a) Calculate the Cash Conversion Cycle (CCC) for the company and discuss measures the company could adopt to shorten its CCC.
Q: Net operational cash flow is a metric created by cash-basis accounting. Explain the metric in detail
A: Cash basis accounting: According to cash basis of accounting, revenue should be recognized at the…
Q: Niagara Ltd Income Statement for the year ended 31 Dec 2020 1 000 650 350 Sales Cost of goods sold…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Mention and explain in brief any two ways for a company to reduce it's cash conversion cycle.
A: Cash conversion cycle is the length of time it takes to convert resources such as inventory and…
Q: An analyst who is interested in assessing a company’s fi nancial position is most likely to focus on…
A: Financial statement includes statement of cash flows, Balance sheet and Profit and loss statement.
Q: Graffiti Advertising, Incorporated, reported the following financial statements for the last two…
A: Operating cash flow is the amount of cash generated from operating activities of business. It is…
Q: Define the following terms: inventory conversion period, average collection period, and payables…
A: All the transactions of the company that are happened during the year will be recorded first in the…
Q: Which of the following situation is better for the company? O a. All of these O b. Cash conversion…
A: The cash conversion cycle (CCC) is the days of inventory plus the days of receivable less the days…
Q: Given the following information, what is the cash flow from operating activities? $4,300 $4,800 750…
A: Cash flow from operating activities can be calculated using direct method or indirect method. Under…
Q: Stack Technologies Income Statement For the year ended December 31, 2021 Net Sales $405,000 Expenses…
A: The Statement of Cash Flows, one of the four required financial statements by GAAP, details the…
Q: Define the net operating cash flow.
A: Net operating cash flow is the the cash generated by a company through its operating activities…
Q: should the terminal cashflow be used to calculate the net present value of a company? Give reasons…
A: In order to calculate net present value we should consider the effect of total cash inflow and cash…
Q: Please answer the following questions 1. _________________ is the discounted net future cash…
A: Profitability Index= PV of cash inflows/Initial cash outlay where, PV= Present Value Balanced…
Q: In this method, the company compares the amount spent on the investment with the discounted expected…
A: a. Payback is the period in which the investment can break-even. b. NRV is the difference of…
Q: How can we estimate the profits (more precisely, the cash nows) that the assets will generate during…
A: It is a process of acquiring an approximation or projection or forecast of a firm’s future budgetary…
Q: Which of the following items are included in calculating Firm Free Cash Flow? I. Cost of goods sold…
A: Cash flows refer to the payments that are made in or out of the business, it takes into account the…
Q: Cash flow may be represented as being determined from: -receivables -operating income -revenue…
A: Cash flows include the net amount of cash and cash equivalent of the business that shows the in and…
Q: Prepare a cash flow statement (indirect method) from the given information.
A: The cash flow statement is one of the important financial statements which is prepared at the year…
Q: Is the cash conversion cycle useful and important in financial analysis? Explain
A: The working capital is a short term fund, which is used to meet day to day operational costs of a…
Q: Adjusted Trial Balance January 31, 2019 Accounts Cash Office Supples Prepaid Rent Equipment…
A: Cash Flow Statement:-Indirect Method Data that demonstrates how much money a company spent or made…
Q: 6. The Philippine Institute of Civil Engineers is planning to construct its own building. Two…
A: Present value is the present worth of any sum of money to be received in the future at a specified…
Q: What should a firm’s goal be regarding the cash conversion cycle,holding other things constant?…
A: The cash conversion cycle refers to the number of days between paying for crude materials or…
Q: EA7. LO 16.3 Use the following information from Chocolate Company's financial statements to…
A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…
Q: Would the move to a JIT system have a one-time or recurring impact on operating cash flow?
A: JIT inventory system: JIT system is a method adopted by manufacturers with an objective of…
Q: pare a cash flow statement (indirect method) from the given inform
A:
Q: What should a firm’s goal be regarding the cash conversion cycle? Explain
A: The cash conversion cycle measures the number of days between the company making a deposit to buy…
Q: Lala Electronics Sdn. Bhd. Statement of Comprehensive Income for the year ended 31/12/2020 RM RM…
A: Cash conversion cycle measures the time a firm takes to convert its raw material to cash from sales.…
Q: Which of the following can be used when forecasting cash flows? Select one: a. All of given choices.…
A: Cash flow refers to inflow or outflow of cash from the business during an accounting year.…
Q: The two approaches to reporting cash flows provided by operating activities are the a. the…
A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…
Q: Assets Cash Accounts receivable Inventories Prepaid expenses Land REYNOLDS COMPANY Comparative…
A: Statement of Cash Flow - This statement shows an increase and decreases in cash due to three major…
Q: Calculate the cash flow from operating activity
A: Cash flows from operating activities is an important section of cash flow statement which shows all…
Q: A company’s current fi nancial position would best be evaluated using the:C . statement of cash fl…
A: A company's current financial position would best be evaluated using balance sheet.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
- Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?ABC Company Ltd. has annual revenues of $750 million and annual cost of goods sold of $450 million. Annual cash flows from operations are $51 minion, while daly credit sales were $163,548. It published its annual report for the financial year 2021-22 ending, with the following balance sheet items as at 31 march 2022: Ending inventory: $82 million Ending accounts receivable: $56 million Ending accounts payable: $43 million ABC Co. Lid, treasurers forecast the following balance pattern for monthly collections: Month 0: 5% Month 1: 40% Month 2 35% Month 3: 15% Month 4: 5% Required: a) Calculate the Cash Conversion Cycle (CCC) for the company and discuss measures the company could adopt to shorten its CCC. b) What percentage of outstanding sales proceeds are yet to be collected as receivables 3 months after the sales were invoiced?The following data are taken from the financial statements of Cullumber Company. 2022 2021 Accounts receivable (net), end of year $ 587,000 $ 585,000 Net sales on account 4,927,000 3,921,000 Terms for all sales are 1/10, n/45 Compute for each year the accounts receivable turnover. At the end of 2020, accounts receivable was $554,500. (Round answers to 1 decimal place, e.g. 12.5.) 2022 2021 Accounts receivable turnover Enter turnover in times rounded to 1 decimal place. times Enter turnover in times rounded to 1 decimal place. times Compute for each year the average collection period. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) 2022 2021 Average collection period Enter the collection period in days rounded to 1 decimal place. days Enter the collection period in days rounded to 1 decimal place. days
- The 2021 income statement of Adrian Express reports sales of $14,097,000, cost of goods sold of $8,154,000, and net income of $1,540,000. Balance sheet information is provided in the following table. ADRIAN EXPRESSBalance SheetsDecember 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 540,000 $ 700,000 Accounts receivable 1,280,000 940,000 Inventory 1,680,000 1,340,000 Long-term assets 4,740,000 4,180,000 Total assets $ 8,240,000 $ 7,160,000 Liabilities and Stockholders' Equity Current liabilities $ 1,960,000 $ 1,600,000 Long-term liabilities 2,240,000 2,340,000 Common stock 1,880,000 1,880,000 Retained earnings 2,160,000 1,340,000 Total liabilities and stockholders' equity $ 8,240,000 $ 7,160,000 Industry averages for the following four risk ratios are as follows:…V Company reported sales revenue of P4,600,000 in the income statement for the year ended December 31, 2019. The entity wrote of uncollectible accounts tolling P20,000 during the current year 2018 2019 Accounts receivable 1,000,000 1,300,000 Allowance for uncollectible accounts 60,000 110,000 69. Under Cash basis, what amount should be reported as sales for the current year? а. 4,900,000 b. 4,350,000 c. 4,300,000 d. 4,280,000 70. What amount of bad debts are recognized for the current year? 60,000 b. 70,000 a. c. 80,000 d. 110,000Meta Company reported sales revenue of P4,600,000 in the income statement for the year ended December 31, 2019. The entity wrote of uncollectible accounts tolling P20,000 during the current year 2018 2019 Accounts receivable 1,000,000 1,300,000 Allowance for uncollectible accounts 60,000 110,000 42. Under Cash basis, what amount should be reported as sales for the current year? а. 4,900,000 b. 4,350,000 c. 4,300,000 d. 4,280,000 43. What amount of bad debts are recognized for the current year? а. 60,000 b. 70,000 80,000 d. 110,000 С.
- The following information was taken from the accounts receivable records of Monty Corporation as at December 31, 2020: OutstandingBalance Percentage Estimatedto be Uncollectible 0 – 30 days outstanding $156,000 0.5% 31 – 60 days outstanding 65,400 2.5% 61 – 90 days outstanding 40,000 4.0% 91 – 120 days outstanding 20,800 6.5% Over 120 days outstanding 5,100 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,280 prior to the adjustment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $4,010 prior to the…The following information was taken from the accounts receivable records of Sarasota Corporation as at December 31, 2020: OutstandingBalance Percentage Estimatedto be Uncollectible 0 – 30 days outstanding $160,000 0.5% 31 – 60 days outstanding 66,000 2.5% 61 – 90 days outstanding 40,200 4.0% 91 – 120 days outstanding 20,600 6.5% Over 120 days outstanding 5,600 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,200 prior to the adjustment (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $3,880 prior to the adjustment.The following information was taken from the accounts receivable records of Pina Colada Corporation as at December 31, 2020: OutstandingBalance Percentage Estimatedto be Uncollectible 0 – 30 days outstanding $154,000 0.5% 31 – 60 days outstanding 63,200 2.5% 61 – 90 days outstanding 39,100 4.0% 91 – 120 days outstanding 21,600 6.5% Over 120 days outstanding 5,300 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,170 prior to the adjustment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $3,990 prior to…