Question

You have collected the following information for the Mumias limited: Item Beginning Ending Inventory $6,000 $4,000...

  1. You have collected the following information for the Mumias limited:

Item

Beginning

Ending

Inventory

$6,000

$4,000

Accounts Receivable

$1,800

$2,600

Accounts payable

$2,800

$5,000

Credit sales for the year just ended were $ 50,000 and cost of goods sold was $30,000

Required

  1. How long does it take Mumias Ltd to collect on its receivables?
  2. How long does merchandise stay around before it is sold
  3. How long does Mumias Ltd take to pay its bills
  4. Calculate the cash cycle and operating cycle
0 0
Add a comment Improve this question Transcribed image text
Answer #1

soution 1. Calulation of Days that mumias Ltd. takey colled its deceivables é - It can be calulated as number of days divided2. Calculation of number of days for which merchandise to stay before it is sold & 14 can be calculated and number of days di3. | Calulation_of_no.0.1 days_act_mumiau dedatoke H o pay ils_bills - It can be caluated as number of days divided by Accoun41 4 Operaling-cycle : Povestory_Pested talis deceivable I period Lorectory period is the amount of lime inventory _sits in s

Add a comment
Know the answer?
Add Answer to:
You have collected the following information for the Mumias limited: Item Beginning Ending Inventory $6,000 $4,000...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 1. Consider the following financial statement information for the Hop Corporation:   Item Beginning Ending   Inventory $...

    1. Consider the following financial statement information for the Hop Corporation:   Item Beginning Ending   Inventory $ 10,800 $ 11,800   Accounts receivable 5,800 6,100   Accounts payable 8,000 8,400      Net sales $ 88,000      Cost of goods sold 68,000 Calculate the operating cycle Calcuate the cash cycle 2. Here are the most recent balance sheets for Country Kettles, Inc. Excluding accumulated depreciation, determine whether each item is a source or a use of cash, and the amount. COUNTRY KETTLES, INC. Balance Sheet 2018...

  • Question 4 Garmin Ltd. uses the periodic inventory system and had the following inventory information available:...

    Question 4 Garmin Ltd. uses the periodic inventory system and had the following inventory information available:                                                                Units               Unit Cost           Total Cost Jan         1          Beginning inventory        100                    $4                   $   400              20          Purchase                         500                    $5                     2,500 Jul        25          Purchase                         100                    $6                        600 Nov      20          Purchase                        300                    $7                   2,100                                                                1,000                                           $5,600 A physical count of inventory on December 31 showed that there were 350 units on hand. Instructions Answer the following independent questions and show calculations supporting...

  • Novak Limited is trying to determine the amount of its ending inventory as at February 28,...

    Novak Limited is trying to determine the amount of its ending inventory as at February 28, the company’s year end. The accountant counted everything in the warehouse in early March, which resulted in an ending inventory amount of $200,800. However, the accountant was not sure how to treat the following transactions, so he did not include them in the count. He has asked for your help in determining whether or not the following transactions should be included in inventory: 1....

  • Bramble Limited is trying to determine the amount of its ending inventory as at February 28,...

    Bramble Limited is trying to determine the amount of its ending inventory as at February 28, the company’s year end. The accountant counted everything in the warehouse in early March, which resulted in an ending inventory amount of $231,900. However, the accountant was not sure how to treat the following transactions, so he did not include them in the count. He has asked for your help in determining whether or not the following transactions should be included in inventory: 1....

  • Mangold Limited is trying to determine he amount o its ending inventory as at February 28, the company's year end....

    Mangold Limited is trying to determine he amount o its ending inventory as at February 28, the company's year end. The accountant counted everything n the warehouse in arly March, which resulted n an cnding nventory amount af 202 accountant was not sure how to treat the folowing transactions, so he did not incdude them in the count. He has asknd for your help in determining whather or not the following transactions should be included in inventary 0 Howavor, the...

  • 11. You have the following balance sheet and income statement information for Epic Corp.: Balance sheet...

    11. You have the following balance sheet and income statement information for Epic Corp.: Balance sheet $ Accounts receivable (A/R) 1,800 Inventory 3,600 Accounts payable (A/P) 760 Income statement $ Sales 7,200 Cost of goods sold (COGS) 5,760 All sales and purchases were on credit. a. How long is the days inventory outstanding (in days)? b. How long is the collection period (in days)? c. How long is the payables period (in days)? d. How long is the cash conversion...

  • on October 10 and 18. Date Item Oct Beginning inventory 4 Purchase 10 Sales 18 Purchase...

    on October 10 and 18. Date Item Oct Beginning inventory 4 Purchase 10 Sales 18 Purchase Quantity Units) 10 Unit Price $6 26 15 Sales 20 TO IV. (40") Journalize the following transactions secording to each description 1. Nov. 1. purchased supplies on account. $600 2. Nov. 3. bought a one-year insurance contract for $3,600. 3. Noy. 5, returned $6,000 of the merchandise purchased 06 Oct 26 (Oct 26. purchased $12.000 of merchandise on credit terms of 3/10, 1/30, FOB...

  • 1. Using the attached information, calculate for 2015 and 2016 the following: a) Receivables turnover,Inventory turnover,...

    1. Using the attached information, calculate for 2015 and 2016 the following: a) Receivables turnover,Inventory turnover, and Payable turnover. b)Receivables period,Inventory period,and Payable period. c)Operating Cycle and Cash Conversion cycle 2. Discuss the changes that took place from 2015 to 2016 and suggest the ways how the company could improve its performance Balance Sheets for Years Ended 2014, 2015, and 2016 ASSETS 2014 2015 2016 Cash and marketable securities Receivables Inventories Total current assets Grass plant and equipment less accumulated...

  • I have posted the instructions and the lab template. please answer it fully. Thank you! Lab...

    I have posted the instructions and the lab template. please answer it fully. Thank you! Lab #1 - Chapter 13 Assignment Instructions: 1) On the template provided, use Excel to calculate each subtotal or total (blank underlined and highlighted space) on the Balance Sheet and the Income Statement 2) For the Income Statement, perform a vertical analysis USING EXCEL FORMULAS for 20X9 and 20X8 in the cells labeled "% of Sales." Round to two decimal places. (To copy a formula,...

  • Required information (The following information applies to the questions displayed below. The following financial statements and...

    Required information (The following information applies to the questions displayed below. The following financial statements and additional information are reported. 2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $103,900 Accounts receivable, net 74, eee Inventory 69,800 Prepaid expenses 5, eee Total current assets 252,700 Equipment 130,000 Accum. depreciation-Equipment (30, eee) Total assets $352,7ee Liabilities and Equity Accounts payable $ 31,000 Wages payable 6,600 Income taxes payable 4,000 Total current liabilities 41,600 Notes payable (long...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT