Assets | 2012 | 2013 |
---|---|---|
Cash | 45 | 50 |
A/R | 362 | 301 |
Inventory | 386 | 237 |
Total | 793 | 588 |
Net Fixed Assets | 1000 | 1200 |
Total Assets | 1793 | 1788 |
Liabilities | 2012 | 2013 |
---|---|---|
Accounts Payable | 341 | 327 |
Notes Payable | 150 | 125 |
Total | 491 | 452 |
Long-Term Debt | 500 | 750 |
Common Stock | 400 | 400 |
Retained Earnings | 95 | 125 |
1486 | 1727 |
2013 | |
---|---|
Sales | 1553 |
Cost of Goods Sold | 1242 |
Depreciation | 200 |
EBIT | 111 |
Interest | 80 |
Taxes | 60 |
Net Income | -29 |
A. What is the Accounts Payable Turnover Ratio (to 1 decimal)?
B. What is the Inventory Period (to 1 decimal)?
C.What is the Accounts Receivable Period (to 1 decimal)?
D. What is the Operating Cycle (to 1 decimal)?
A) Accounts Payable Turnover Ratio = COGS/ Average Payable Ratio
= 1242/(341+327)/2 = 3.7
Inventory Days = 365*((341+327)/2)/1242 = 98.16 days
b)Inventory Days = 365*Average Inventory/ COGS=
365*(386+237)/(2*1242)= 91.5
c) Account receivable days = 365* Average Receivable/Sales = 365*
(362+301)/(2*1553) = 77.9
d) Operating cycle = Inventory days - Days Average Receivables
Period - Days Account Payable Period = 71.3
Please Discuss in case of Doubt
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Assets 2012 2013 Cash 45 50 A/R 362 301 Inventory 386 237 Total 793 588 Net...
Assets 2012 2013 Cash 45 50 A/R 362 301 Inventory 386 237 Total 793 588 Net Fixed Assets 1000 1200 Total Assets 1793 1788 Liabilities 2012 2013 Accounts Payable 341 327 Notes Payable 150 125 Total 491 452 Long-Term Debt 500 750 Common Stock 400 400 Retained Earnings 95 125 1486 1727 2013 Sales 1553 Cost of Goods Sold 1242 Depreciation 200 EBIT 111 Interest 80 Taxes 60 Net Income -29 What is the Accounts Receivable Turnover (to 1 decimal)?
Assets 2012 2013 Cash 45 50 A/R 362 301 Inventory 386 237 Total 793 588 Net Fixed Assets 1000 1200 Total Assets 1793 1788 Liabilities 2012 2013 Accounts Payable 341 327 Notes Payable 150 125 Total 491 452 Long-Term Debt 500 750 Common Stock 400 400 Retained Earnings 95 125 1486 1727 2013 Sales 1553 Cost of Goods Sold 1242 Depreciation 200 EBIT 111 Interest 80 Taxes 60 Net Income -29 A. What is the Accounts Payable Turnover Ratio (to...
Assets 2012 2013 Cash 45 50 A/R 362 301 Inventory 386 237 Total 793 588 Net Fixed Assets 1000 1200 Total Assets 1793 1788 Liabilities 2012 2013 Accounts Payable 341 327 Notes Payable 150 125 Total 491 452 Long-Term Debt 500 750 Common Stock 400 400 Retained Earnings 95 125 1486 1727 2013 Sales 1553 Cost of Goods Sold 1242 Depreciation 200 EBIT 111 Interest 80 Taxes 60 Net Income -29 A. What is the Cash Cycle (to 1 decimal)?...
Assets 2012 2013 Cash A/R Inventory 386 237 Total Net Fixed Assets Total Assets 1793 1788 45 5 362 301 793 588 1000 1200 Liabilities 2012 2013 Accounts Payable Notes Payable Total Long-Term Debt Common Stock Retained Earnings 341 327 150 125 491 452 500 750 400 400 95 125 1486 1727
Assets 2012 2013 Cash 45 50 A/R 331 111 Inventory 197 255 Total 573 416 Net Fixed Assets 1000 1200 Total Assets 1573 1616 Liabilities 2012 2013 Accounts Payable 157 308 Notes Payable 150 125 Total 307 433 Long-Term Debt 500 750 Common Stock 400 400 Retained Earnings 95 125 1302 1708 2013 Sales 3168 Cost of Goods Sold 2534.4 Depreciation 200 EBIT 433.6 Interest 80 Taxes 60 Net Income 293.6 A. What is the Profit Margin for 2013 (...
Assets 2012 2013 Cash 45 50 A/R 331 111 Inventory 197 255 Total 573 416 Net Fixed Assets 1000 1200 Total Assets 1573 1616 Liabilities 2012 2013 Accounts Payable 157 308 Notes Payable 150 125 Total 307 433 Long-Term Debt 500 750 Common Stock 400 400 Retained Earnings 95 125 1302 1708 2013 Sales 3168 Cost of Goods Sold 2534.4 Depreciation 200 EBIT 433.6 Interest 80 Taxes 60 Net Income 293.6 A. What is the Current Ratio for 2013 (to...