Homework Answers
5. Pop Co's Cash Cycle = Days inventory on hand + Days sales outstanding - Days payables outstanding
= 23 + 3 + 24 - 28
= 22 Days
6.Working Capital Cycle = Inventory Days + Receivable Days - Payable Days
= 170+22-35
= 157 Days (Option A)
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5 The following ratios are available from the accounts of Pop Co Receivables payment period Finished...
The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods...
The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods inventory turnover period Raw materials inventory turnover period Payables payment period 24 days 23 days 3 days 28 days Calculate the length of Pop Co's cash cycle. 6 days 26 days C 32 days 88 days
Exercise 5-18A Calculate receivables ratios (LO5-8) Below are amounts (in millions) from three companies' annual reports....
Exercise 5-18A Calculate receivables ratios (LO5-8) Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable $1,735 5,766 549 Ending Accounts Receivable $2.682 6,294 585 Walco TarMart CostGet Net Sales $314,427 59,878 60,963 Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round intermediate calculations. Enter your answers in millions. Round your "Average accounts receivable" and "Receivables turnover ratio" answers to one decimal place.) Receivables Turnover Ratio...
6.0 Calculate the average manufacturing period and the average storage period. We know the following data...
6.0 Calculate the average manufacturing period and the average storage period. We know the following data of the company Perfilados, S.A: It bought and consumed € 105,000 in raw materials for the manufacture of its product and, on average, maintained a stock level of them in the stock of € 9,250. Calculate the average storage period. Average storage time = (average inventory / cost of annual purchases) x 360 days Calculation: 9250/105000*365=32.2 days is this right? The cost of its...
Annual sales $9,700,000 Cost of goods sold $7,275,000 Inventory $3,200,000 Accounts receivable $1,800,000 Accounts payable $2,400,000...
Annual sales $9,700,000 Cost of goods sold $7,275,000 Inventory $3,200,000 Accounts receivable $1,800,000 Accounts payable $2,400,000 Blue Ostrich's CFO is interested in determining the length of time funds are tied up in working capital. Use the information in the preceding table to complete the following table. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.) Value Inventory conversion period Average collection period Payables deferral period Cash conversion cycle...
The Belgian Vandeputte Group has the following operating structure: sales = 100, raw materials used in...
The Belgian Vandeputte Group has the following operating structure: sales = 100, raw materials used in the business = 30, direct production costs = 40, administrative costs = 20. Operating cycle: raw materials inventories = 15 days, length of production cycle = one month, inventories of finished products = 15 days. Payment terms: suppliers two months, customers one month, other costs paid in cash. Assuming zero VAT, calculate working capital in days of sales. The production cycle lasts one month,...
A2. The following data are extracted from the financial statements of Frozen Limit and Tarzan Limited...
A2. The following data are extracted from the financial statements of Frozen Limit and Tarzan Limited for the year ended 31 March 2019. Closing inventory Trade receivables Total current assets Trade payables Total current liabilities Sales Cost of sales Gross profit Profit before tax Frozen Limited S000 10,300 3.800 16,300 4,600 6.920 62,500 50.100 12.400 4.600 Tarzan Limited S'000 9,500 2,300 13,400 4,500 7,810 58,900 51,300 7,600 1,900 Frozen Limited and Tarzan Limited have a similar size and structure. They...
g for Receivables BE8.10 (LO 3) On January 10, 2020, Perez Co. sold merchandise on account...
g for Receivables BE8.10 (LO 3) On January 10, 2020, Perez Co. sold merchandise on account to Robertsen Co. for $15,600, n/30. On February 9, Robertsen Co. gave Perez Co. a 6% promissory note in settlement of this account. Prepare the journal entry to record the sale and the settlement of the account receivable. (Omit cost of goods sold entries.) BE8.11 (LO 2,4) During its first year of operations, Fertig Company had credit sales of $3,000,000, of which $400,000 remained...
23:38 < EA Qn BUS3006 Assignment (TM) ☺ A2. The following data are extracted from the...
23:38 < EA Qn BUS3006 Assignment (TM) ☺ A2. The following data are extracted from the financial statements of Fron Limited and Tarzan Limited for the year ended 31 March 2019 Tartan Limited S000 Frozen Limited S000 10100 3800 16.10 2100 13.00 4500 Closing inventory Trade receivables Total current assets Trade payables Total current liabilities Sales Cost of sales Gross profil Profit before tax 7510 6920 6 500 SO 100 12.400 4 SR900 $1,300 7,600 1.900 Frozen Limited and Tarzan...
Calculate the following ratios for 2015 and show the steps involved: a) Inventory turnover ratio b)...
Calculate the following ratios for 2015 and show the steps
involved:
a) Inventory turnover ratio
b) average days in inventory
c) receivables turnover ratio
d) average collection period
e) asset turnover ratio
f) profit margin on sales
g) return on assets
h) return on shareholders equity
i) equity multiplier
j) return on shareholders equity using the Du Port framework
Note: See attached balance sheet and income statement below as
reference
We were unable to transcribe this imageAS AT 31 DECEMBER...
The following trial balance was extracted from the books of G & E Production Company Ltd...
The following trial balance was extracted from the books of G & E Production Company Ltd on 31 December 2018 and presented to you the Financial Accountant: Trial Balance Details/Accounts Dr $ Cr $ Purchases of direct raw materials 24,200,000 Stock of direct raw materials 1 January 2018 5,500,000 Wages paid to manufacture goods 12,000,000 Insurance 2,000,000 Electricity 1,450,000 Cash at bank 28,000,000 Accounts payable 3,500,000 Discounts 450,000 500,000 Return of direct raw materials 200,000 Cash in hand 600,000 Work-in-progress...
The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods inventory turnover period Raw materials inventory turnover period Payables payment period 24 days 23 days 3 days 28 days Calculate the length of Pop Co's cash cycle. 6 days 26 days C 32 days 88 days
Exercise 5-18A Calculate receivables ratios (LO5-8) Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable $1,735 5,766 549 Ending Accounts Receivable $2.682 6,294 585 Walco TarMart CostGet Net Sales $314,427 59,878 60,963 Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round intermediate calculations. Enter your answers in millions. Round your "Average accounts receivable" and "Receivables turnover ratio" answers to one decimal place.) Receivables Turnover Ratio...
Annual sales $9,700,000 Cost of goods sold $7,275,000 Inventory $3,200,000 Accounts receivable $1,800,000 Accounts payable $2,400,000 Blue Ostrich's CFO is interested in determining the length of time funds are tied up in working capital. Use the information in the preceding table to complete the following table. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.) Value Inventory conversion period Average collection period Payables deferral period Cash conversion cycle...
A2. The following data are extracted from the financial statements of Frozen Limit and Tarzan Limited for the year ended 31 March 2019. Closing inventory Trade receivables Total current assets Trade payables Total current liabilities Sales Cost of sales Gross profit Profit before tax Frozen Limited S000 10,300 3.800 16,300 4,600 6.920 62,500 50.100 12.400 4.600 Tarzan Limited S'000 9,500 2,300 13,400 4,500 7,810 58,900 51,300 7,600 1,900 Frozen Limited and Tarzan Limited have a similar size and structure. They...
g for Receivables BE8.10 (LO 3) On January 10, 2020, Perez Co. sold merchandise on account to Robertsen Co. for $15,600, n/30. On February 9, Robertsen Co. gave Perez Co. a 6% promissory note in settlement of this account. Prepare the journal entry to record the sale and the settlement of the account receivable. (Omit cost of goods sold entries.) BE8.11 (LO 2,4) During its first year of operations, Fertig Company had credit sales of $3,000,000, of which $400,000 remained...
23:38 < EA Qn BUS3006 Assignment (TM) ☺ A2. The following data are extracted from the financial statements of Fron Limited and Tarzan Limited for the year ended 31 March 2019 Tartan Limited S000 Frozen Limited S000 10100 3800 16.10 2100 13.00 4500 Closing inventory Trade receivables Total current assets Trade payables Total current liabilities Sales Cost of sales Gross profil Profit before tax 7510 6920 6 500 SO 100 12.400 4 SR900 $1,300 7,600 1.900 Frozen Limited and Tarzan...
Calculate the following ratios for 2015 and show the steps
involved:
a) Inventory turnover ratio
b) average days in inventory
c) receivables turnover ratio
d) average collection period
e) asset turnover ratio
f) profit margin on sales
g) return on assets
h) return on shareholders equity
i) equity multiplier
j) return on shareholders equity using the Du Port framework
Note: See attached balance sheet and income statement below as
reference
We were unable to transcribe this imageAS AT 31 DECEMBER...
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