Using 2019 values and not averages, answer the following:c) What is the purchase to payment conversion periods?d) What is the cash conversion cycle? Income StatementNet salesCost of goods soldGross profitOperating expensesInterestIncome before taxesIncome taxesNet incomeBalance SheetRequired CashSurplus CashCashAccounts receivableInventoriesTotal current assetsGross fixed assetsLess accumulateddepreciationNet fixed assetsTotal assetsAccounts payableBank loanAccrued liabilitiesTotal current liabilitiesLong-term debtEFNCommon stockRetained earningsTotal liabilities and equity20194,125.002,681.251,443.75737.0033.00673.75202.13471.632019206.310.42175501.5952,3622,800-1,2501,5503,912201933015011059015008502.3223,912

Cash Conversion Cycle:- There is basic discussion of working capital cycle of a business, which…

Answered: Using 2019 values and not averages,…

Using 2019 values and not averages, answer the following: c) What is the purchase to payment conversion periods? d) What is the cash conversion cycle?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Using 2019 values and not averages, answer the following:

c) What is the purchase to payment conversion periods?
d) What is the cash conversion cycle?

Income Statement
Net sales
Cost of goods sold
Gross profit
Operating expenses
Interest
Income before taxes
Income taxes
Net income
Balance Sheet
Required Cash
Surplus Cash
Cash
Accounts receivable
Inventories
Total current assets
Gross fixed assets
Less accumulated
depreciation
Net fixed assets
Total assets
Accounts payable
Bank loan
Accrued liabilities
Total current liabilities
Long-term debt
EFN
Common stock
Retained earnings
Total liabilities and equity
2019
4,125.00
2,681.25
1,443.75
737.00
33.00
673.75
202.13
471.63
2019
206.3
10.4
217
550
1.595
2,362
2,800
-1,250
1,550
3,912
2019
330
150
110
590
150
0
850
2.322
3,912

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