The below table reports the $ amounts of inventory, receivables, payables, net sales and cost of good sols the XYZ Company in 200N. Accounts Beginning Ending Inventory $10,000 $12,000 Receivables 8,000 10,000 Accounts payable 6,000 7,000 Net sales 30,000 Cost of Goods sold 14,000 1) Calculate the inventory turnover and inventory period. Interpret. 2) Calculate the receivable turnover and receivable period. Interpret. 3) Calculate the operating cycle (OC). Interpret. 4) Calculate and interpret the cash cycle (CC).
The below table reports the $ amounts of inventory, receivables, payables, net sales and cost of good sols the XYZ Company in 200N. Accounts Beginning Ending Inventory $10,000 $12,000 Receivables 8,000 10,000 Accounts payable 6,000 7,000 Net sales 30,000 Cost of Goods sold 14,000 1) Calculate the inventory turnover and inventory period. Interpret. 2) Calculate the receivable turnover and receivable period. Interpret. 3) Calculate the operating cycle (OC). Interpret. 4) Calculate and interpret the cash cycle (CC).
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The below table reports the $ amounts of inventory, receivables, payables, net sales and cost of good sols the XYZ Company in 200N.
|
Accounts |
Beginning |
Ending |
|
Inventory |
$10,000 |
$12,000 |
|
Receivables |
8,000 |
10,000 |
|
Accounts payable |
6,000 |
7,000 |
|
Net sales |
30,000 |
|
|
Cost of Goods sold |
14,000 |
1) Calculate the inventory turnover and inventory period. Interpret.
2) Calculate the receivable turnover and receivable period. Interpret.
3) Calculate the operating cycle (OC). Interpret.
4) Calculate and interpret the cash cycle (CC).
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