On average, your firm sells $33,000 of items on credit each day. The average inventory period...
On average, your firm sells $33,000 of items on credit each day. The average inventory period is 34 days and your operating cycle is 54 days. What is the average accounts receivable balance? $660,000 $1,782,000 $1,320,000 $1,155,000 $1,122,000
Homework Answers
operating cycle = average inventory period + average receivables collection period
or, 54 days = 34 days + average receivables collection period
average receivables collection period = 20 days
average receivables collection period = average accounts receivables/ total credit sales
or, 20 = average accounts receivables/total credit sales
average receivables = 20*$33,000
= $6,60,000
The correct option is option 1.
Add Answer to:
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A firm ended the year with an average collection period of 20 day. The firm’s credit...
A
firm ended the year with an average collection period of 20 day.
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year-end balance in accounts receivable?
Hanse, Inc., has a cash cycle of 37.5 days, an operating cycle of 51 days, and an inventory period of 21 days. The company reported cost of goods sold in the amount of $359,000, and credit sales were $582,000. What is the company’s average balance in acco
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Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 72 days, an average collection...
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camp manufacturing turns over its inventory 5 times each year, has an average payment period of 35 days, and has an ave...
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Value options Inventory conversion period: 56.77 days 43.26 days 45.96 days 131.70 days Average collection period:...
Value options
Inventory conversion period:
56.77 days
43.26 days
45.96 days
131.70 days
Average collection period:
34.20 days
23.32 days
86.55 days
29.54 days
Payables deferral period:
62.57 days
49.53 days
54.75 days
127.00 days
Cash conversion cycle:
31.37 days
91.25 days
29.72 days
28.07 days
Then the multiple choices
1. Cash conversion cydle AaAa Consider the case of Green Melon Electronics Company: Green Melon Electronics Company is a mature firm that has a stable flow of business. The following...
Everdeen, INC has a 100 day operating cycle. If it's average age of inventory is 35...
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The following company information is available: Average accounts receivable $ 200,000 Average inventories 130,000 Average accounts...
The following company information is available: Average accounts receivable $ 200,000 Average inventories 130,000 Average accounts payable 140,000 Net sales 10,000,000 Cost of goods sold 1,800,000 Purchases 1,140,000 What is the company's operating cycle (in days)? (Assume all sales are made on credit. Round your answer to the nearest day.) A. 7 days B. 26 days C. 5 days D. 34 days
Darla’s Cosmetics has annual credit sales of $1,314,000 and an average collection period of 45 days...
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The Malibu Corporation has annual credit sales of $34 million. The average collection period is 36...
The Malibu Corporation has annual credit sales of $34 million. The average collection period is 36 days. What is the average investment in accounts receivable as shown on the balance sheet? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Average receivables.
A
firm ended the year with an average collection period of 20 day.
The firm’s credit sales were $50 million. What is the firm’s
year-end balance in accounts receivable?
Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 72 days, an average collection period of 48 days, and a payables deferral period of 24 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year. Do not round intermediate calculations. a. What is the length of the firm's cash conversion cycle? Round your answer to the nearest whole number. days b. If annual sales are $4,818,000 and all sales are on credit, what...
Value options
Inventory conversion period:
56.77 days
43.26 days
45.96 days
131.70 days
Average collection period:
34.20 days
23.32 days
86.55 days
29.54 days
Payables deferral period:
62.57 days
49.53 days
54.75 days
127.00 days
Cash conversion cycle:
31.37 days
91.25 days
29.72 days
28.07 days
Then the multiple choices
1. Cash conversion cydle AaAa Consider the case of Green Melon Electronics Company: Green Melon Electronics Company is a mature firm that has a stable flow of business. The following...
The Malibu Corporation has annual credit sales of $34 million. The average collection period is 36 days. What is the average investment in accounts receivable as shown on the balance sheet? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Average receivables.
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