Samaritan Supplies, Inc. has P5 million in inventory and P2 million in accounts receivable. Its average daily sales are P100,000. The company has P1.5 million in accounts payable. Its average daily purchases are P50,000. What is the length of the company's inventory conversion period? A. 50 days B. 90 days C. 120 days D. 40 days Using the information in the last question, what is the length of the company's cash conversion period? A. 50 days B. 20 days C. 30 days D. 40 days

Samaritan Supplies, Inc. has P5 million in inventory and P2 million in accounts receivable. Its average daily sales are P100,000. The company has P1.5 million in accounts payable. Its average daily purchases are P50,000. What is the length of the company's inventory conversion period? A. 50 days B. 90 days C. 120 days D. 40 days Using the information in the last question, what is the length of the company's cash conversion period? A. 50 days B. 20 days C. 30 days D. 40 days

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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Please help me with my Financial Management assignment. I already worked for it, just want to confirm from experts. I really appreciate any help you can provide.

I want to know the solution and answer for Questions no. 2 and 3

Luke Company has an inventory conversion period of 60 days, a receivables
conversion period of 45 days, and a payments cycle of 30 days. What is the
length of the firm's cash conversion cycle?
90 days
B. 75 days
A.
54 days
D. 105 days
C.
Samaritan Supplies, Inc. has P5 million in inventory and P2 million in
accounts receivable. Its average daily sales are P100,000. The company has P1.5
million in accounts payable. Its average daily purchases are P50,000. What is
the length of the company's inventory conversion period?
A. 50 days
B. 90 days
C. 120 days
D. 40 days
Using the information in the last question, what is the length of the company's
cash conversion period?
A. 50 days
B. 20 days
C. 30 days
D. 40 days
Julia Company has P5 millioh of average inventory and sales of P30 million.
Using a 365-day year, calculate the firm's inventory conversion period.
A. 30.25 days
B. 45.00 days
C. 60.83 days
D. 72.44 days

Approach to decide on the efficient procurement and investment of funds for the day-to-day operations of a business. Financial management aims at profit maximization, and it includes financing and capital budgeting.

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