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

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Author:MOYER

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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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Quantitative Problem: 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 $123,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.52 times during the year. Its receivables balance at the end of the year was $13,118.63 and its payables balance at the end of the year was $7,390.82. Using this information calculate the firm's cash conversion cycle. Do not intermediate calculations. Round your answer to the nearest whole number. days
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.
TMRW Co. has annual credit sales of $1,080,000 and an average collection period of 32 days in 2010. Assume a 360-day year. What is the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period. XYZ company has annual credit sales of $1,440,000 and an average collection period of 45 days in 2005. Assume a 360 day year. What is the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales time the average collection period. Haru company has an average collection period of 35 days. The accounts receivable balance is $105,000. What is the value of its credit sales?
Ill Company provides the following data for the year 2020: Cash sales - 500,000; Collection from customers -3,950,000; Increase in accounts receivable - 250,000; Decrease in notes receivable - 50,000; accounts receivable written off - 100,000; sales discounts - 200,000; and sales return and allowances - 70,000 (20,000 of which refunded to customers) What was the amount of gross sales for 2020? P5,020,000 P4,900,000 P4,500,000 d. P5,000,000
Knight Roundtable Co. had annual credit sales of $1,080,000 and an average collection period of 32 days in 2018. Assume a 360-day year. What were the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period. Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 49,000 units per year, an ordering cost of $8 per order, and carrying costs of $1.60 per unit.
Watin Inc's 2015 income statement reported net sales of $5,000,000. Watin's average accounts receivable during 2015 amounted to $450,000. Using 360 days to a year, Watin's: A. Accounts receivable turnover rate is approximately 13.8 times. B. Accounts receivable turnover rate is approximately 1.25 times. C. Average number of days to collect an account receivable is 32 days. D. Accounts receivable turnover rate is approximately 2 times.
Glee Consolidated had sales of $15,000,000 for 2014. On December 31, 2013 the balance in Accounts Receivable was $700,000 and on December 31, 2014 the balance was $1,300,000. On December 31, 2013 the balance in Inventory was $400,000 and on December 31, 2014 the balance was $600,000. The Cost of Goods Sold during 2014 was $11,000,000. -Compute the Accounts Receivable turnover ratio. -Compute the Inventory turnover ratio.
During 2014, SABA Company had net sales of $11,400,000. Most of the sales were on credit. At the end of 2014, the balance of Accounts Receivable was $1,400,000 and Allowance for Uncollectible Accounts had a debit balance of $48,000. SABA Company’s management uses two methods of estimating uncollectible accounts expense: the percentage of net sales method and the accounts receivable aging method. The percentage of uncollectible sales is 1.5 percent of net sales, and based on an aging of accounts receivable, the end-of-year uncollectible accounts total $140,000. Show your computations.
During 2018, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returnsof $720,000. Cost of goods sold totaled $6,360,000 (60% of sales). The company estimates that 8% of all saleswill be returned. Prepare the year-end adjusting journal entries to account for anticipated sales returns, assumingthat all sales are made on credit and all accounts receivable are outstanding.

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