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WRITE YOUR DISCUSSION AND RECOMMENDATION ABOUT AVERAGE COLLECTION PERIOD TO ACCOUNTS PAYABLE TURNOVER

WRITE YOUR DISCUSSION AND RECOMMENDATION ABOUT AVERAGE COLLECTION PERIOD TO ACCOUNTS PAYABLE TURNOVER

FINANCIAL ACCOUNTING
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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WRITE YOUR DISCUSSION AND RECOMMENDATION ABOUT AVERAGE COLLECTION PERIOD TO ACCOUNTS PAYABLE TURNOVER

Efficiency Ratio Асcounts Php 1,725,000.00 Total Sales 4.53947 Receivable (Php 400,000.00 + Php 360,000.00) Accounts Receivable (Average) times Turnover Average 365 days 365 days 80.40580 Collection Ассounts Receivable Turnover 4.53947 days Period Inventory Cost of Sales Php 781,000.00 4.88125 Turnover Inventory (Average) Php 160,000.00 times Average Age of Inventory 365 days 365 days 74.77593 Inventory Turnover 4.88125 days Асcounts Cost of Sales Ассounts Payаble Php 781,000.00 4.85093 Payable Php 161,000.00 times Turnover Average Age of Payables 365 days 365 days 75.24328 Accounts Payable Turnover 4.85093 days Total Asset Total Sales Php 1,725,000.00 1.75573 Turnover Total Assets (Average) Php 982,500.00 times 155.18173 Operating Сycle Average Collection Period + Average Age of Inventory 80.40580 days + 74.77593 days days Cash 79.93845 Operating Cycle - Average Age of Payables Conversio 155.18173 days – 74.77593 days days n Сycle
Transcribed Image Text:Efficiency Ratio Асcounts Php 1,725,000.00 Total Sales 4.53947 Receivable (Php 400,000.00 + Php 360,000.00) Accounts Receivable (Average) times Turnover Average 365 days 365 days 80.40580 Collection Ассounts Receivable Turnover 4.53947 days Period Inventory Cost of Sales Php 781,000.00 4.88125 Turnover Inventory (Average) Php 160,000.00 times Average Age of Inventory 365 days 365 days 74.77593 Inventory Turnover 4.88125 days Асcounts Cost of Sales Ассounts Payаble Php 781,000.00 4.85093 Payable Php 161,000.00 times Turnover Average Age of Payables 365 days 365 days 75.24328 Accounts Payable Turnover 4.85093 days Total Asset Total Sales Php 1,725,000.00 1.75573 Turnover Total Assets (Average) Php 982,500.00 times 155.18173 Operating Сycle Average Collection Period + Average Age of Inventory 80.40580 days + 74.77593 days days Cash 79.93845 Operating Cycle - Average Age of Payables Conversio 155.18173 days – 74.77593 days days n Сycle
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