Famous Farm's payables deferral period (PDP) is 50 days (on a 365-day basis), accounts payable are...
Famous Farm's payables deferral period (PDP) is 50 days (on a 365-day basis), accounts payable are $100 million, and its balance sheet shows inventory of $125 million. What is the inventory turnover ratio?
Homework Answers
| Payables deferral period = ( Account payable / Cost of goods sold ) * Days in a year | |
| 50 = ( 100000000 / Cost of goods sold ) * 365 | |
| Cost of goods sold = 100000000 * 365 / 50 | 730000000 |
| Inventory turnover ratio = Cost of goods sold / Inventory = 730000000 / 125000000 | 5.84 |
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Value options Inventory conversion period: 56.77 days 43.26 days 45.96 days 131.70 days Average collection period:...
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
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Zane Corporation has an inventory conversion period of 69 days, an average collection period of 43...
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Required: 1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers...
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1) accounts receivable turnover (2 decimal places) 2) average collection period (365 days in a year)...
1) accounts receivable turnover (2 decimal places)
2) average collection period (365 days in a year)
3) inventory turnover (2 decimal places round)
4) average sale period (365 days in a year)
5)operating cycle
6)total asset turnover
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Loblaws has an inventory turnover rate of 12.3, an accounts payable period of 30 days, and...
Loblaws has an inventory turnover rate of 12.3, an accounts payable period of 30 days, and an accounts receivable period of 40 days. What is the length of the cash cycle? 39.67 days 41.13 days 37.88 days 34.42 days 30.71 days
My chosen answer is wrong. I know I have to use the accounts payable turnover formula and the turnover expressed in days...
My chosen answer is wrong. I
know I have to use the accounts payable turnover formula and the
turnover expressed in days formula. The formulas are:
Accounts payable turnover (T/O) = Purchases from suppliers
(assumed all on credit) ÷ Average accounts payable
Turnover expressed in days = 365 ÷ T/O (computed from the
formula above)
A company reports Cost of Goods Sold of $275,000, Ending Inventory of $120,000, Beginning Inventory of $15,000, Ending Accounts Payable of $110,000 and Beginning Accounts...
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...
Current ratio = 2.6 times Credit sales $1,314m Average collection period 50 days Inventory turnover 1.50 times Total asset turnover 0.50 times Debt ratio 75% Use the above information to complete the balance sheet below. (Enter your answer in millions. Use 365 days a year.) Cash million million Current liabilities Accounts receivable $ 670 million million Long-term debt Inventory million 0 million Total debt Current assets 670 million million Stockholders' equity million 670 million Fixed assets $ 0 million Total...
Zane Corporation has an inventory conversion period of 83 days, an average collection period of 33 days, and a payables deferral period of 40 days. Assume 365 days in year for your calculations. a. What is the length of the cash conversion cycle? Round your answer to two decimal places. 76 days b. If Zane's annual sales are $4,278,570 and all sales are on credit, what is the investment in accounts receivable? Round your answer to the nearest cent. Do...
Required: 1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.) Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio times times days times The 2021 income statement of Anderson Medical Supply Company reported net sales of $11 million, cost of goods sold of $6.7 million, and net income of $895,000. The following table shows the company's comparative balance sheets for 2021 and 2020: ($ in thousands) 2021...
1) accounts receivable turnover (2 decimal places)
2) average collection period (365 days in a year)
3) inventory turnover (2 decimal places round)
4) average sale period (365 days in a year)
5)operating cycle
6)total asset turnover
Weller Corporation Comparative Income statement and Reconciliation (dollars in thousands) This Year Last Year Sales $79,000 $74,000 Cost of goods sold 52.000 48.000 Gross margin 27,000 26,000 Selling and administrative expenses Selling expenses 8,500 8,000 Administrative expenses 12,000 11,000 Total selling and administrative...
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...
My chosen answer is wrong. I
know I have to use the accounts payable turnover formula and the
turnover expressed in days formula. The formulas are:
Accounts payable turnover (T/O) = Purchases from suppliers
(assumed all on credit) ÷ Average accounts payable
Turnover expressed in days = 365 ÷ T/O (computed from the
formula above)
A company reports Cost of Goods Sold of $275,000, Ending Inventory of $120,000, Beginning Inventory of $15,000, Ending Accounts Payable of $110,000 and Beginning Accounts...
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