The 2015 and 2016 balance sheets for Steele Electric showed Cash of $6,700 and $ 8,200 respectively, Accounts Receivable of $15,000 and $ 18,000, respectively, Inventory of $ 11,500 and $8,500, respectively, and Accounts Payable of $5,500 and $ 8,500, respectively. Its 2016 Income Statement showed Net Sales of $118,000, Cost of Goods Sold of $ 57,000, and Net Income of $33,000. The cash conversion cycle for 2016 was: (Assume all Sales are credit sales. Round any intermediary calculations to two decimal places and your final answer to the nearest day.) A. 64days. B. 70 days. C. 58 days. D. 32days
The 2015 and 2016 balance sheets for Steele Electric showed Cash of $6,700 and $ 8,200 respectively, Accounts Receivable of $15,000 and $ 18,000, respectively, Inventory of $ 11,500 and $8,500, respectively, and Accounts Payable of $5,500 and $ 8,500, respectively. Its 2016 Income Statement showed Net Sales of $118,000, Cost of Goods Sold of $ 57,000, and Net Income of $33,000. The cash conversion cycle for 2016 was: (Assume all Sales are credit sales. Round any intermediary calculations to two decimal places and your final answer to the nearest day.) A. 64days. B. 70 days. C. 58 days. D. 32days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The 2015 and 2016 balance sheets for Steele Electric showed Cash of $6,700
and $ 8,200 respectively, Accounts Receivable of $15,000 and $ 18,000,
respectively, Inventory of $ 11,500 and $8,500, respectively, and Accounts
Payable of $5,500 and $ 8,500, respectively. Its 2016 Income Statement
showed Net Sales of $118,000, Cost of Goods Sold of $ 57,000, and Net
Income of $33,000. The cash conversion cycle for 2016 was: (Assume all Sales
are credit sales. Round any intermediary calculations to two decimal places
and your final answer to the nearest day.)
A. 64days.
B. 70 days.
C. 58 days.
D. 32days
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