Average cash | $56,250 |
Average accounts payable | $540,000 |
Average accounts receivable | $1,350,000 |
Average inventories | $675,000 |
Average cash sales | $4,500,000 |
Average credit sales | $13,500,000 |
Average cost of goods sold | $8,100,000 |
Average number of days per year | 365 days |
Inventory conversion period | 30.42 days |
Payables deferral period | 1. days A. 24 B. 24.33 C. 10.95.? |
Receivables conversion period | 2. days A 36.5 B. 36 C. 27.38 ? |
Cash conversion cycle | 3. days A. 54.75 B. 91.25 C. 42.59 ? |
Payables deferral period = 365 * Average account payables / Average cost of goods sold
= 365 * 540000 / 8100000 = 24.33 days
Receivables conversion period = 365 * Average account receivables / Average credit sales
= 365 * 1350000 / 13500000
= 36.50 days
Inventory conversion period (given) = 30. 42 days
Cash conversion cycle = Inventory period + Receivables period - Payables deferral period
= 30.42 + 36.50 - 24.33
= 42.59 days
Average cash $56,250 Average accounts payable $540,000 Average accounts receivable $1,350,000 Average inventories $675,000 Average cash...
Value options Inventory conversion period: 56.77 days 43.26 days 45.96 days 131.70 days Average collection period: 34.20 days 23.32 days 86.55 days 29.54 days Payables deferral period: 62.57 days 49.53 days 54.75 days 127.00 days Cash conversion cycle: 31.37 days 91.25 days 29.72 days 28.07 days Then the multiple choices 1. Cash conversion cydle AaAa Consider the case of Green Melon Electronics Company: Green Melon Electronics Company is a mature firm that has a stable flow of business. The following...
ABC has $32 million of inventory and $31 million of accounts receivable. Its average daily sales are $851,000 and its gross profit margin is 22 percent. The company’s payables deferral period is 54.2 days. What is the length of the firm's cash conversion cycle?
Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 73 days, an average collection period of 40 days, and a payables deferral period of 37 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations. 1. What is the length of the firm's cash conversion cycle? days 2. If Negus's annual sales are $3,437,675 and all sales are on credit, what is the firm's investment in accounts receivable? Round...
Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 72 days, an average collection period of 48 days, and a payables deferral period of 24 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year. Do not round intermediate calculations. a. What is the length of the firm's cash conversion cycle? Round your answer to the nearest whole number. days b. If annual sales are $4,818,000 and all sales are on credit, what...
Cash conversion cycle American Products is concerned about managing cash efficiently. On the average, inventories have an age of 90 days, and accounts receivable are collected in 60 days. Accounts payable are paid approximately 30 days after they arise. The firm has annual sales of about $30 million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables; and, a 365-day year. a. Calculate the firm
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Problem 16-11 Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 70 days, an average collection period of 48 days, and a payables deferral period of 38 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations. What is the length of the firm's cash conversion cycle? days If Negus's annual sales are $3,106,575 and all sales are on credit, what is the firm's investment in accounts receivable? Round...
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Inmoo Company's average age of accounts receivable is 68 days, the average age of accounts payable is 40 days, and the average age of inventory is 69 days. Assuming a 365-day year, what is the length of its cash conversion cycle? a. 104 days b. 113 days c. 97 days d. 76 days e. 114 days
ack to Assignment Attempts: Keep the Highest: /3 4. Problem 21-11 (Cash Conversion Cycle) eBook Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 70 days, an average collection period of 40 days, and a payables deferral period of 29 days. Assume that cost of goods sold is 80 % of sales. Assume a 365-day year. Do not round intermediate calculations. a. What is the length of the firm's cash conversion cycle? Round your answer to the nearest...