The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year:SalesQ1$ 540Q2$ 570Q3Q4$ 630$ 780a. Accounts receivable at the beginning of the year are $300. The company has a 45-day collection period. Calculate cashcollections in each of the four quarters by completing the following:Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.Beginning receivablesSalesCash collectionsEnding receivablesQ1540Q2570Q3630Q4780b. Accounts receivable at the beginning of the year are $300. The company has a 60-day collection period. Calculate cashcollections in each of the four quarters by completing the following:Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.Beginning receivablesSalesCash collectionsEnding receivablesQ1540Q2570Q3630Q4780c. Accounts receivable at the beginning of the year are $300. The company has a 30-day collection period. Calculate cashcollections in each of the four quarters by completing the following:Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.

Accounts receivable refer to the amounts owed to a company by its customers or clients for goods or…

Answered: The Morning Jolt Coffee Company has…

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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Suppose that Ken-Z Art Gallery has annual sales of $870,000, cost of goods sold of $560,000, average inventories of $244,500, average accounts receivable of $265,000, and an average accounts payable balance of $79,000. Assuming that all of Ken-Z's sales are on credit, what will be the firm's cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Zane Corporation has an inventory conversion period of 79 days, an average collection period of 43 days, and a payables deferral period of 50 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle? Round your answer to two decimal places. days If Zane's annual sales are $3,598,365 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer to the nearest cent. $ How many times per year does Zane turn over its inventory? Assume that the cost of goods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio. Do not round intermediate calculations. Round your answer to two decimal places. times
Suppose that Freddie's Fries has annual sales of $620,000; cost of goods sold of $495, 000; average inventories of $21,000; average accounts receivable of $37,000, and an average accounts payable balance of $32, 000. Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle? (Round your answer to 2 decimal places.) a. 37.26. b. 60.86. c. 1.82. d. 13.66.
Inmoo Company's average age of accounts receivable is 89 days, the average age of accounts payable is 40 days, and the average age of inventory is 48 days. Assuming a 365-day year, what is the length of its cash conversion cycle? Please explain process and show calculations.
Medwig Corporation has a DSO of 36 days. The company averages $8,000 in sales each day (all customers take credit). What is the company's average accounts receivable? Assume a 365-day year. Round your answer to the nearest dollar.
A person deposits $150 per month into a savings account for 2 years. If $75 is withdrawn in months 5, 7 and 8 (in addition to the deposits), construct the cash flow diagram to determine how much will be in the account after 2 years at i = 8% per year, compounded quarterly. Assume there is no interperiod interest. $4,050 $3,609 $3,090 $2,045
Provide correct solution
You are looking for a bank in which to open a checking account for your new part-time business. You estimate that in the first year, you will be writing 30 checks per month and will make three debit transactions per month. Your average daily balance is estimated to be $900 for the first six months and $2,400 for the next six months. Use the following information to solve the problem. Bank Monthly Fees and Conditions Bank 1 $16.00 with $1,000 min. daily balance-or-$25.00 under $1,000 min. daily balance Bank 2 $4.50 plus $0.40 per check over 10 checks monthly$1.00 per debit transaction Bank 3 $5 plus $0.25 per check$2.00 per debit transaction Bank 4 $8 plus $0.15 per check$1.50 per debit transaction (a) Calculate the cost (in $) of doing business with each bank for a year. Bank 1 Bank 2 Bank 3 Bank 4 (b) Which bank should you choose for your checking account? Bank 1 Bank 2 Bank 3 Bank 4
Suppose that LilyMac Photography has annual sales of $233,000, cost of goods sold of $168,000, average inventories of $4,800, average accounts receivable of $25,600, and an average accounts payable balance of $7,300.Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Watts Industries' carries 87 days in Inventory, and collects its Accounts Receivable in 75 days. If the firm pays its Accounts Payable in 26 days, what is Watts' Cash Conversion Cycle?
Medwig Corporation has a DSO of 25 days. The company averages $7,750 in sales each day (all customers take credit). What is the company's average accounts receivable? Assume a 365-day year. Round your answer to the nearest dollar.
A firm has sales of $1.4 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $205,000. What is the average collection period? (Use 365 days in a year. Do not round intermediate calculation. Round the final answer to the 1 decimal place.) Average collection period days 76thjbnn

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