General Accounting Question Winston Inc. is trying to determine the effect of its inventoryturnover ratio and days sales outstanding on its cashconversion cycle. Winston's 2015 sales (all on credit) were$110,000 and its cost of goods sold was 75% of sales. Itturned over its inventory 8.6 times during the year. Itsreceivables balance at the end of the year was $13,144.94and its payables balance at the end of the year was$7,401.74. Using this information calculate the firm's cashconversion cycle. Round your answer to the nearest whole.Round the days amounts in your intermediate calculationsto the nearest whole day. Do not round other intermediatecalculations.

Step 1:- Introduction to the Cash conversion cycleThe cash conversion cycle is generally calculated…

Answered: Winston Inc. is trying to determine the…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

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Problem 3P

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Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2015 sales (all on credit) were $127,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.21 times during the year. Its receivables balance at the end of the year was $13,176.01 and its payables balance at the end of the year was $7,390.04. Using this information calculate the firm's cash conversion cycle. Do not intermediate calculations. Round your answer to the nearest whole number. days
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Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastain's 2016 sales (all on credit) were $285000; its cost of goods sold is 80% of sales; and it earned a net profit of 6%, or $17100. It turned over its inventory 6 times during the year, and its DSO was 35 days. The firm had fixed assets totaling $37000. Chastain's payables deferral period is 40 days. a.Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations. b.Assuming Chastain holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Round your answers to two decimal places. Do not round intermediate calculations. C.Suppose Chastain's managers believe that the inventory turnover can be raised to 8.9 times. What would Chastain's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover…
Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastain's 2016 sales (all on credit) were $285000; its cost of goods sold is 80% of sales; and it earned a net profit of 6%, or $17100. It turned over its inventory 6 times during the year, and its DSO was 35 days. The firm had fixed assets totaling $37000. Chastain's payables deferral period is 40 days. Assume 365 days in year for your calculations. A. Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations. B.Assuming Chastain holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Round your answers to two decimal places. Do not round intermediate calculations. C.Suppose Chastain's managers believe that the inventory turnover can be raised to 8.9 times. What would Chastain's cash conversion cycle, total assets…
Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastain's 2018 sales (all on credit) were $106,000; its cost of goods sold is 80% of sales; and it earned a net profit of 4%, or $4,240. It turned over its inventory 6 times during the year, and its DSO was 40 days. The firm had fixed assets totaling $27,000. Chastain's payables deferral period is 35 days. Assume 365 days in year for your calculations. Calculate Chastain's cash conversion cycle. Do not round intermediate calculations. Round your answer to two decimal places. days Assuming Chastain holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Do not round intermediate calculations. Round your answers to two decimal places. Total assets turnover ROA % Suppose Chastain's managers believe that the inventory turnover can be raised to 9.4 times. What would…
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Utica Company's net accounts receivable was $250,000 at December 31, 2016, and $300,000 at December 31, 2017. Net cash sales for 2017 were $100,000. The accounts receivable turnover for 2017 was 5.0, What was Utica's total net sales for 2017?
The average days of account payable?
The comparative balance sheet of Sloan company reveal that accounts receivable (before deducting allowance) increased by $15,000 in 2016. During the same period, the allowance for uncollectible accounts increased by $2,100. If sales revenue was $120,000 in 2016nand bad debt expenses were 2% of sales, how much cash was collected from customers during the year? Please show the work.
The FMT Corporation is trying to determine the effect of its inventory turnover ratio and days salesoutstanding (DSO) on its cash flow cycle. FMT sales last year (all on credit) were ₱150,000, and it earneda net profit of 6%, or ₱9,000. It turned over its inventory 5 times during the year, and its DSO was 36.5days. The firm had fixed assets totalling ₱35,000. FMT payables deferral period is 40 days.a. Calculate FMT’s cash conversion cycle.b. Assuming FMT holds negligible amounts of cash and marketable securities, calculate its totalassets turnover and ROA.c. Suppose FMT Corp managers believe that the inventory turnover can be raised to 7.3 times.What would FMT’s cash conversion cycle, total assets turnover, and ROA have been if theinventory turnover had been 7.3 for the year?

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