Chapter 11, Problem 3EYCT

Lucid Echo Studios has forecasted sales of $24,000,000 for next year and expects its cost of goods sold (COGS) to remain at 75% of sales. Currently, the firm holds $2,700,000 in inventories, $1,800,000 in accounts receivable, and $2,200,000 in accounts payable. What is the length of Lucid Echo Studios' cash conversion cycle (CCC)? a. 40.94 days b. 31.58 days c. 37.53 days d. 43.75 days

Financial accounting 25.4.45

Financial accounting MCQ 1

General accounting question

When deciding whether to make or buy the component

The cost of ending inventory?

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Newman Corporation sells one product, its waterproof hiking boot. It began operations in the current year and had an ending inventory of 8,500 units. The company sold 20,000 units throughout the year. Fixed manufacturing overhead is $7 per unit, and total manufacturing cost per unit is $22.60 (including fixed manufacturing overhead costs). What is the difference in net income between absorption and variable costing?

Evercrest Industries has total current assets of $10,840,000, current liabilities of $6,200,000, and a quick ratio of 0.75. What is its level of inventory?