You are trying to prepare financial statements for Bartlett Pickle Company, but seem to be missing its balance sheet. You have Bartlett's income statement, which shows sales last year were $320 million with a gross profit margin of 50 percent. You also know that credit sales equaled three-quarters of Bartlett's total revenues last year. In addition, Bartlett had a collection period of 50 days, a payables period of 30 days, and an inventory turnover of 5 times based on cost of goods sold. Calculate Bartlett's year-ending balance for accounts receivable, inventory, and accounts payable. Note: Round your answers to 1 decimal place. Bartlett's year-ending balance (million) Accounts receivable Inventory Accounts payable

You are trying to prepare financial statements for Bartlett Pickle Company, but seem to be missing its balance sheet. You have Bartlett's income statement, which shows sales last year were $320 million with a gross profit margin of 50 percent. You also know that credit sales equaled three-quarters of Bartlett's total revenues last year. In addition, Bartlett had a collection period of 50 days, a payables period of 30 days, and an inventory turnover of 5 times based on cost of goods sold. Calculate Bartlett's year-ending balance for accounts receivable, inventory, and accounts payable. Note: Round your answers to 1 decimal place. Bartlett's year-ending balance (million) Accounts receivable Inventory Accounts payable

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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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

You are trying to prepare financial statements for Bartlett Pickle Company, but seem to be missing its balance sheet. You have
Bartlett's income statement, which shows sales last year were $320 million with a gross profit margin of 50 percent. You also know
that credit sales equaled three-quarters of Bartlett's total revenues last year. In addition, Bartlett had a collection period of 50 days, a
payables period of 30 days, and an inventory turnover of 5 times based on cost of goods sold. Calculate Bartlett's year-ending balance
for accounts receivable, inventory, and accounts payable.
Note: Round your answers to 1 decimal place.
Bartlett's year-ending
balance (million)
Accounts receivable
Inventory
Accounts payable
13

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