Question

Consider the following financial statement information for the Hop Corporation: Item Beginning $10,400 Ending $11,400 Inventory Accounts 5,400 5,700 receivable Accounts 7,600 8,000 payable Net sales $84,000 Cost of goods sold 64,000 Calculate the operating and cash cycles. (Use 365 days a year. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Operating cycle days days Cash cycle

Answer 1

E9 X ✓ fc =D2*365/B7 B Beginning $ 10,400 $ 5,400 7,600 D Average 10,900 $ $ $ C Ending 11,400 $ 5,700$ 8,000 $ 5,550 7,800 A Item 2 Inventory 3 Accounts receivable 4 Accounts payable 5 6 Net sales 7 Cost of goods sold 8 9 Days sales in inventory 10 Average collection period 11 Average payment period $ $ 84,000 64,000 Average inventoryx365:Cost of goods sold Average receivablesx365:Credit sales Average payable 365:Cost of goods sold 62.16 Days 24.12 Days 44.48 Days 12 13 Operating cycle Days sales in inventory+Average collection period 14 Cash cycle Operating cycle - Average payment period 86.28 Days 41.80 Days

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