The current assets of Trisikstin Enterprise consist of cash, accounts receivable and inventory. The following information is available. Credit sales Inventory turnover Working capital 75% of total sales 5 times P1,120,000 Current ratio 2 to 1 Quick ratio Average collection period Accounts Payable 1.25 to 1 42 days Turnover 10 times Working days 360 days Compute for the following: 1. The estimated inventory amounts 2. Cash conversion cycle

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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PROBLEM #8
The current assets of Trisikstin Enterprise consist of cash, accounts receivable and
inventory. The following information is available.
Credit sales
75% of total sales
Inventory turnover
Working capital
Current ratio
Quick ratio
Average collection period
Accounts Payable
5 times
P1,120,000
2 to 1
1.25 to 1
42 days
Turnover
10 times
Working days
360 days
Compute for the following:
1. The estimated inventory amounts
2. Cash conversion cycle
Transcribed Image Text:PROBLEM #8 The current assets of Trisikstin Enterprise consist of cash, accounts receivable and inventory. The following information is available. Credit sales 75% of total sales Inventory turnover Working capital Current ratio Quick ratio Average collection period Accounts Payable 5 times P1,120,000 2 to 1 1.25 to 1 42 days Turnover 10 times Working days 360 days Compute for the following: 1. The estimated inventory amounts 2. Cash conversion cycle
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