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?

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?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

See similar textbooks

Related questions

Q: Expert solve the question financial accounting

A: Step 1: Define Financing Working CapitalOne of the strategies used by a firm to finance its capital…

Q: Norris company's 2013 income statement is ?

A: To calculate net income, we use the formula: Net Income = Revenues - Expenses Step-by-step Analysis…

Q: General accounting

A: Step 1: Determine the liabilities at the beginning of the year using the formulaStep 2: Calculate…

Q: During FY 2018 Bay Manufacturing had total manufacturing costs are $450,000. Their cost of goods…

A: To determine the beginning Work-in-Process (WIP) Inventory for FY 2018, we use the Cost of Goods…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Cash Flow Degree of Operating Leverage (CF-DOL)The Cash Flow DOL (CF-DOL)…

Q: Solve this question general Accounting

A: To analyze Federal Express's financial performance for 2009, we can compute key financial ratios…

Q: What was the balance in the Finished Goods Inventory on January 1, 2018?

A: To determine the balance in the Finished Goods Inventory on January 1, 2018, we can use the formula…

Q: What would the net income be if the company used variable costing?

A: Step 1: Define Variable CostingVariable costing is a method that is used to prepare an income…

Q: Y Company purchased an asset for $73,000 on January 1, Year 1. The asset was expected to have a…

A: Step 1:First, calculate the rate of depreciation under the double declining balance method:…

Q: Compute gross margin under absorption costing? General accounting

A: Step 1: Key InformationFrom the provided table:Selling Price per Unit: $60.Costs per Unit:Direct…

Q: Job costing Question

A: Explanation of Direct Materials: Direct materials, totaling $2,454 in our example, are raw materials…

Q: I won't to this question answer general Accounting

A: Step 1: Define Du Pont AnalysisDu Pont model aids in assessing return equity. To obtain a clear…

Q: What is the value of total assets?

A: Step 1: Define AssetsIn accounting, assets can be financial or non-financial resources present in…

Q: Hi expert please give me answer general accounting question

A: Step 1: Definition of Lower of Cost or Market (LCM) RuleThe LCM rule is an accounting principle used…

Q: What is the amount of the annual depreciation computed by the straight-line method?

A: Step 1: Define Straight-Line DepreciationThe straight-line depreciation charges equal depreciation…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Direct Labor Efficiency VarianceDirect labor efficiency variance measures the…

Q: Hii expert please given correct answer general accounting

A: To compute Chavez Company's current ratio, we use the formula:Current Ratio = Total Current Assets /…

Q: I don't need ai answer general accounting question

A: Step 1: Definition of Economic Order Quantity (EOQ)Economic Order Quantity (EOQ) is the order size…

Q: What is the value of ending inventory using the variable costing method? General accounting

A: Step 1: Define Variable Costing MethodAs the name suggests, in the variable costing only the…

Q: Uma Company uses the allowance method of accounting for uncollectable accounts. On May 3, the Uma…

A: Step 1: Introduction to allowance for uncollectible accountsThe allowance for uncollectible accounts…

Q: Provide answer financial accounting

A: Step 1: Define Holding Period ReturnThe holding period return for an investor represents the return…

Q: Naveena Smith is a single individual. She claims a standard deduction of $12,000. Her salary for the…

A: Concept of Gross Income: Gross income refers to the total income earned before any deductions or…

Q: Parker manufacturing estimated solve this accounting questions

A: Step 1: Definition of Overapplied and Underapplied OverheadOverapplied Overhead: Occurs when the…

Q: Get correct solution for this financial accounting question

A: To calculate the Earnings Per Share (EPS), we use the formula: EPS = (Net Income - Preferred…

Q: General accounting

A: To calculate the accounts receivable turnover and average collection period for ABC Logistics Corp.…

Q: A company repots the following information for its solve this accounting questions

A: Explanation of Variable Costing:Variable costing is a method of accounting where only variable…

Q: Which of the following statement is true? General accounting

A: Step 1: Define Variance AnalysisVariance analysis refers to the comparison of actual and standard…

Q: Thompson corp. Has a total debt ratio

A: Total Debt Ratio = Total Debt/Total Assets45% = 245,000/Total AssetsTotal Assets = 245,000/45%Total…

Q: None

A: Step 1: Identify the formula Step 2: Input the values Step 3: Subtract the Standard Deduction from…

Q: Subject - general account

A: Parent's Transaction: When a parent sells stock to a child, the IRS applies "related party…

Q: General accounting

A: To solve this question, we can use the formula for the real rate of interest: r=current consumption…

Q: Answer me this accounting reasoning Question

A: Step 1:Opportunity cost refers to the value of the next best alternative that must be forgone when…

Q: Provide correct answer general Accounting

A: To calculate the balance in the cash account, we subtract the total of the credit entries from the…

Q: What was the amount of net income for the year? General accounting

A: Step 1: Define Net IncomeA company's net income is presented in the last line of its income…

Q: I need this question answer financial accounting

A: Step 1: Define Effective Annual RateThe effective annual rate, which accounts for interest…

Q: Martinez company has a current account solution general accounting question

A: Step 1: a. The accounts receivable turnover ratio is calculated as follows: Accounts receivable…

Q: Solve this question Financial accounting

A: To calculate the flotation-adjusted cost of new common stock for Sunny Day Manufacturing Company, we…

Q: On December 1, 2022, Oriole's Company Accounts Receivable balance was $19,720. During December,…

A: Explanation of Accounts ReceivableAccounts Receivable refers to the amounts a company is owed by…

Q: ANSWER THIS GENERAL ACCOUNTING PROBLEM

A: Explanation of Predetermined Overhead Rate (POHR):The Predetermined Overhead Rate (POHR) is…

Q: Please given answer general Accounting

A: To calculate the inventory turnover ratio, we need to use the following formula: Inventory Turnover…

Q: Please provide correct answer financial accounting

A: Step 1: Define RatioThe ratio is a method of measuring a company's profitability. It is the most…

Q: FINANCIAL ACCOUNTING 5.8

A: Concept of Sales Units per Day:Sales units per day represent the number of units an individual is…

Q: Use absorption costing

A: Explanation of Variable Manufacturing Cost: Variable manufacturing cost represents the combination…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Cost AllocationCost Allocation: Cost allocation distributes a total cost to…

Q: Calculate Waka's net sales for this period.

A: To calculate Waka Company's net sales, use the following formula: Net Sales = Total Sales - Sales…

Q: What is the firm's assets turnover?

A: To calculate the firm's asset turnover (Sales/Assets) and explain how the given answer of 2.88 times…

Q: Mr. Husker's Tuxedos Corp. ended the year 2017 with an average collection period of 35 days. The…

A: Explanation of Average Collection Period:The average collection period measures the average number…

Q: General Accounting Solution

A: To calculate the stockholders' equity, we use the basic accounting equation: Assets = Liabilities +…

Q: What was the amount of net income for the year?

A: The net income is computed by simply deducting expenses from revenue.Net income = Revenue -…

Q: general account

A: Separate the variable and fixed component of the cost of good sold. Variable cost of goods sold =…

Question

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

What will be the firm's operating cycle ?
Need answer the question
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? Help me with this
Suppose that James industries has annual sales of $7.47 million
Opereting cycle? General accounting
What will be the firm's oprating cycle .general accounting
What will be the firm's operating cycle?
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?
If a firm has sales of $21,764,000 a year, and the average collection period for the industry is 55 days, what should this firm’s accounts receivable be if the firm is comparable to the industry? Assume there are 365 days in a year. Do not round intermediate calculations. Round your answer to the nearest dollar.
Want to give you a correct answer
Provide Answer with Calculation
Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and payables deferral period of 25 days. Assume that the costs of goods sold are 80% of its sales. a) What is the length of the firm's cash conversion cycle? b) If Negus's annual sales are $4,380,000 and all sales are on credit, what is the firm's investment in accounts receivable? c) How many times per year does Negus Enterprises turn over its inventory?