Ouyang Inc reports 2012 revenue of $20 billion. During 2012, its A/R rose by $0.8 billion, A/P increased by $1.3 billion, inventories decreased by $0.2 billion and unearned revenue increased by $0.6 billion. Its ratio of revenue to cash collected from customers of 2012 is closest to:
1.84
1.63
1.48
1.24
1.01
Revenue = $20 billion
Increase in accounts receivables = $0.8 billion
Increase in unearned revenue = $0.6 billion
Cash collected from customers = Revenue - Increase in accounts receivables + Increase in unearned revenue
= 20 - 0.8 + 0.6
= $19.8 billion
Ratio of revenue to cash collected from customers = Revenue/Cash collected from customers
= 20/19.8
= 1.01
Fifth option is correct
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Ouyang Inc reports 2012 revenue of $20 billion. During 2012, its A/R rose by $0.8 billion,...
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