How long (in days) does it take the below firm to collect its receivables? Use 365...
How long (in days) does it take the below firm to collect its receivables? Use 365 days for the year.
|
Sales |
910 |
|
COGS |
742 |
|
Accounts Receivable |
83 |
|
Inventory |
118 |
|
Accounts Payable |
103 |
Homework Answers
|
Accounts Receivable Turnover = Sales/Average accounts receivables = 910/83 = 10.96 times Days to collect = 365/Accounts Receivable Turnover = 365/10.96 = 33.3 days |
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How long (in days)
does it take the below firm to collect its receivables? Use 365...
A firm takes 30 days to collect its accounts receivables and 45 days to pay its...
A firm takes 30 days to collect its accounts receivables and 45 days to pay its accounts payable. Its average age of inventory is 75 days. Its annual sales are $800,000 with COGS of $350,000 and purchases of $220,000. 1. What is the firm's cash conversion cycle (CCC)? What does it measure? 2. What is the amount of resources tied up in the CCC in each of the following areas: a Inventory b Accounts receivable C Accounts payable Cash 3...
The Manana Corporation had annual sales of $60 million that occurred evenly throughout the 365 days...
The Manana Corporation had annual sales of $60 million that occurred evenly throughout the 365 days of the year. Its accounts receivable balance averaged $2 million. How long, on average, does it take the firm to collect on its sales? 19.1 days 25.2 days 15.8 days 12.2 days
The Manana Corporation had sales of $81.3 million this year. Its accounts receivable balance averaged $3.3...
The Manana Corporation had sales of $81.3 million this year. Its accounts receivable balance averaged $3.3 million. How long, on average, does it take the firm to collect on its sales? (Hint: Use 365 days for a year.) The collection period is ____days. (Round to one decimal place.)
PROJECT: Select any bank / firm of your choice. Take out its financial statements. Calculate the...
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
PROJECT: Select any bank / firm of your choice. Take out its financial statements. Calculate the...
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
Need help with receiables turnover ratio and days to collect. Cola Inc. and Soda Co. are two of the largest and mos...
Need help with receiables turnover ratio and days to collect.
Cola Inc. and Soda Co. are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Tiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful hecounts Accounts Receivable, Net of Allowance cola...
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Question 8 5 pts During 2014, a firm paid $30,000 in interest expense and its long-term debt increased from $55,00...
Question 8 5 pts During 2014, a firm paid $30,000 in interest expense and its long-term debt increased from $55,000 to $65,000. What is the 2014 cash flow to creditors? $40,000 $20,000 $10,000 -$20,000 -$30,000 Question 3 5pts Al's Sport Store has sales of $897.400 and accounts receivable of $74,100. How many days, on average, does it take the firm to collect its receivables? (Round to the closest # of days) ooooo
Accounts Receivable Turnover and Number of Days' Sales in Receivables Financial statement data for years ending December...
Accounts Receivable Turnover and Number of Days' Sales in Receivables Financial statement data for years ending December 31 for Blum Company are shown below. 2016 2015 Sales $5,794,740 $5,432,660 Accounts receivable: Beginning of year 423,110 474,240 End of year 496,690 416,360 a. Determine the accounts receivable turnover for 2016 and 2015. Round your answers to one decimal place. Accounts Receivable Turnover 2016 2015 b. Determine the number of days' sales in receivables for 2016 and 2015. Use 365 days in...
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A firm takes 30 days to collect its accounts receivables and 45 days to pay its accounts payable. Its average age of inventory is 75 days. Its annual sales are $800,000 with COGS of $350,000 and purchases of $220,000. 1. What is the firm's cash conversion cycle (CCC)? What does it measure? 2. What is the amount of resources tied up in the CCC in each of the following areas: a Inventory b Accounts receivable C Accounts payable Cash 3...
The Manana Corporation had annual sales of $60 million that occurred evenly throughout the 365 days of the year. Its accounts receivable balance averaged $2 million. How long, on average, does it take the firm to collect on its sales? 19.1 days 25.2 days 15.8 days 12.2 days
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
Need help with receiables turnover ratio and days to collect.
Cola Inc. and Soda Co. are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions). Tiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful hecounts Accounts Receivable, Net of Allowance cola...
Question 8 5 pts During 2014, a firm paid $30,000 in interest expense and its long-term debt increased from $55,000 to $65,000. What is the 2014 cash flow to creditors? $40,000 $20,000 $10,000 -$20,000 -$30,000 Question 3 5pts Al's Sport Store has sales of $897.400 and accounts receivable of $74,100. How many days, on average, does it take the firm to collect its receivables? (Round to the closest # of days) ooooo
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