Kindly help me with accounting questions Sunrise Industries reported annual salesof $48 million and maintained an averageaccounts receivable balance of $4 million.How long, on average, does it take thecompany to collect on its sales?

Step 1: Definition of Average Collection Period (ACP)The Average Collection Period measures the…

Answered: Sunrise Industries reported annual…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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If a firm has sales of $25,689,00 a year, and the average collection period for the industry is 45 days, what should this firm's accounts receivable be in the firm is comparable to the industry?
An analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to estimate the company's Accounts Payable. Sales = $93,398Cost of Goods Sold (COGS) = $36,052Cash Cycle = 22 daysOperating Cycle = 86 daysAccounts Receivable Period = AR Period = Average Collection Period (ACP) = 40 daysWhat is the company's Accounts Payable balance?
he Brenmar Sales Company had a gross profit margin (gross profits÷sales) of 34 percent and sales of $8.3 million last year. 79 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.5 million, its current liabilities equal a. If Brenmar's accounts receivable equal $563,000, what is its average collection period? b. If Brenmar reduces its average collection period to 25 days, what will be its new level of accounts receivable? c. Brenmar's inventory turnover ratio is 8.9 times. What is the level of Brenmar's inventories? $303,100, and it has $104,400 in cash plus marketable securities.
The Zocco Corporation has an inventory conversion period of 60 days, an average of collection period of 38 days, and a payable deferral period of 30 days. Assume that cost of goods sold 75% of sales. a. What is the length of the firm’s cash conversion cycle? a. Zocco’s annual sales are $3,421,875 and all sales are on credit, what is the firm’s investment in accounts receivable? b. How many times per year does Zocco turn over its inventory?
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Flying Tigers, Inc., has net sales of $722,000 and accounts receivables of $152,000. What is the firm's accounts receivables turnover? (Give your answer up to two decimal places)
The financial statements of the Novak Corp. report net sales of $300000 and accounts receivable of $55200 and $27600 at the beginning of the year and the end of the year, respectively. What is the average collection period for accounts receivable in days? (Use 365 days for calculation.)
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Suppose that James Industries has annual sales of $7.47 million, cost of goods sold of $3.95 million, average inventories of $1,300,000, and average accounts receivable of $690,000. Assuming that all of James's sales are on credit, what will be the firm's operating cycle?
Your company has net sales of $468,300 and average net receivables of $111,500 for the year. Which of the following statements is correct? (Round all calculations to one decimal place.) (a) The receivables turnover ratio is 4.2 and the days-to-collect is 0.01. (b) The receivables turnover ratio is 0.2 and the days-to-collect is 1,520. (c) The receivables turnover ratio is 4.2 and the days-to-collect is 86.9. (d) The receivables turnover ratio is 0.2 and the days-to-collect is 87.6.
ABC Inc. has the following data. What is the firm's cash (conversion) cycle? Inventory Conversion Period = 38 days Receivables Collection Period = 19 days Payables Deferral Period = 26 days

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Sunrise Industries reported annual sales of $48 million and maintained an average accounts receivable balance of $4 million. How long, on average, does it take the company to collect on its sales?