A firm has the following information from its 2017 statements: Inventory: $250,000 Accounts Receivable:...
A firm has the following information from its 2017 statements:
Inventory: $250,000
Accounts Receivable: $180,000
Accounts Payable: $90,000
Net sales = $1,150,000
Cost of Goods sold = $820,000
a) Calculate its DIH, DSO and DPO.
b) Calculate inventory, receivable and payable turnover ratios
c) Calculate its Operating Cycle and CCC.
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A firm has the following information from its 2017
statements:
Inventory: $250,000
Accounts Receivable:...
3. Calculate the Cash Conversion Cycle (use end-of-period amounts rather than average of receivables, inventory, and...
3. Calculate the Cash Conversion Cycle (use end-of-period amounts rather than average of receivables, inventory, and payables): • Days Sales Outstanding (DSO) = Receivables / (Sales/365) • Days Inventory Held (DIH) = Inventory / (CGS/365) • Days Payable Outstanding (DPO) = Payables/(CGS/365) • Operating Cycle = DSO + DIH • Cash Conversion Cycle (CCC) = Operating Cycle - DPO 2017 2016 2015 2014 2013 DIH 152.08 106.46 101.39 DSO 121.67 73.00 64.89 DPO 121.67 76.04 70.97 Operating Cycle 273.75 179.46...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
uiek ratio to exceed the current ratio? iy moou the current ratio? 15. Interpret a working...
uiek ratio to exceed the current ratio? iy moou the current ratio? 15. Interpret a working capital requirement of S0. PROBLEMS For the problems, CCC-cash conversion cycle, DSo days' sales outstanding, DIH ld, and DPO days' payable outstanding. 1.) Suppose that a firm has a 30-day DSO. Determine the firm's DIlH if the operating cycle is days' inventory a. 30 days b. 60 days c. 80 days 2. Suppose that a firm has a 50-day DIH and a 30-day DPO....
1 Requirements Calculate the following ratios for 2018 and 2017. When calculating days, round you...
1 Requirements Calculate the following ratios for 2018 and 2017. When calculating days, round your answer to the nearest whole number a. Current ratio b. Quick (acid-test) ratio c. Inventory turnover and days' inventory outstanding (DIO) d. Accounts receivable turnover e. Days' sales in average receivables or days' sales outstanding (DSO) f. Accounts payable turnover and days' payable outstanding (DPO). Use 1. cost of goods sold in the formula for accounts payable turnover. g. Cash conversion cycle (in days) (When...
2017 2016 Accounts receivable $18,000 $19,500 Inventory $12,200 $9,000 Fixed assets, net $35,000 $31,000 Accounts payable...
2017 2016 Accounts receivable $18,000 $19,500 Inventory $12,200 $9,000 Fixed assets, net $35,000 $31,000 Accounts payable $15,000 $12,000 Net Sales $157,500 $176,000 Cost of goods sold $125,900 $137,000 Net income $52,900 $54,000 # Shares issued 65,000 60,000 # Shares in treasury stock 8,000 20,000 Calculate the following ratios for 2017: (a) Fixed asset turnover (b) Inventory turnover (c) Receivable turnover (d) Accounts payable turnover (e) Earning Per Share
2 question (30%) Seagate LTD has been striving for the last five years to improve its...
2 question (30%) Seagate LTD has been striving for the last five years to improve its management of working capital. Historical data for the firm's sales, account receivable, inventories, and accounts payable given below. Jan-2014 Jan-2015 an-2016 an-2017 an-2018 Sales-Net £000 2873 3475 5 296 7 759 2 327 1486 1643 eceivable total 411 538 726 903 Accounts payable £000 Inventories 220 283 466 1040 293 129 251 a) Calculate Seagate's DSO, DSI and DPO for each of the five...
PROJECT: Select any bank / firm of your choice. Take out its financial statements. Calculate the...
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
PROJECT: Select any bank / firm of your choice. Take out its financial statements. Calculate the...
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
Given the following information from the current financial statements of Umbrella Corp. Umbrella Corp. Income Statement...
Given the following information from the current financial statements of Umbrella Corp. Umbrella Corp. Income Statement For the year ended December 31, 2021 Sales (all on credit) $1,450,000 Cost of goods sold 1.050.000 Gross profit $400,000 Operating expenses 285.000 Operating income $135,000 Interest expense 5,300 Income before tas $129,700 Income tax expense 45,395 Profit $84,305 Umbrella Corp Balance sheet December 31, 2021 Cash Marketable securities Accounts receivable (not) Prepaid insurance Merchandise inventory Plant Ansats (net) Total Assets $28,500 122,000 52,300...
3. Calculate the Cash Conversion Cycle (use end-of-period amounts rather than average of receivables, inventory, and payables): • Days Sales Outstanding (DSO) = Receivables / (Sales/365) • Days Inventory Held (DIH) = Inventory / (CGS/365) • Days Payable Outstanding (DPO) = Payables/(CGS/365) • Operating Cycle = DSO + DIH • Cash Conversion Cycle (CCC) = Operating Cycle - DPO 2017 2016 2015 2014 2013 DIH 152.08 106.46 101.39 DSO 121.67 73.00 64.89 DPO 121.67 76.04 70.97 Operating Cycle 273.75 179.46...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
uiek ratio to exceed the current ratio? iy moou the current ratio? 15. Interpret a working capital requirement of S0. PROBLEMS For the problems, CCC-cash conversion cycle, DSo days' sales outstanding, DIH ld, and DPO days' payable outstanding. 1.) Suppose that a firm has a 30-day DSO. Determine the firm's DIlH if the operating cycle is days' inventory a. 30 days b. 60 days c. 80 days 2. Suppose that a firm has a 50-day DIH and a 30-day DPO....
1 Requirements Calculate the following ratios for 2018 and 2017. When calculating days, round your answer to the nearest whole number a. Current ratio b. Quick (acid-test) ratio c. Inventory turnover and days' inventory outstanding (DIO) d. Accounts receivable turnover e. Days' sales in average receivables or days' sales outstanding (DSO) f. Accounts payable turnover and days' payable outstanding (DPO). Use 1. cost of goods sold in the formula for accounts payable turnover. g. Cash conversion cycle (in days) (When...
2 question (30%) Seagate LTD has been striving for the last five years to improve its management of working capital. Historical data for the firm's sales, account receivable, inventories, and accounts payable given below. Jan-2014 Jan-2015 an-2016 an-2017 an-2018 Sales-Net £000 2873 3475 5 296 7 759 2 327 1486 1643 eceivable total 411 538 726 903 Accounts payable £000 Inventories 220 283 466 1040 293 129 251 a) Calculate Seagate's DSO, DSI and DPO for each of the five...
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
Given the following information from the current financial statements of Umbrella Corp. Umbrella Corp. Income Statement For the year ended December 31, 2021 Sales (all on credit) $1,450,000 Cost of goods sold 1.050.000 Gross profit $400,000 Operating expenses 285.000 Operating income $135,000 Interest expense 5,300 Income before tas $129,700 Income tax expense 45,395 Profit $84,305 Umbrella Corp Balance sheet December 31, 2021 Cash Marketable securities Accounts receivable (not) Prepaid insurance Merchandise inventory Plant Ansats (net) Total Assets $28,500 122,000 52,300...
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