Homework Answers
A) Inventory conversion period = COGS/Average inventory = 6,750/2,750 = 2.45.
Converting in no. of days = 365/2.45 = 148 days.
Receivable conversion period = sales/AR = 10,000/4,000 = 2.5
Days = 365/2.5 = 146 days
B) Payable defferal period = Total purchase (COGS+Inventory)/ AP = (6,750+2,750)/ 3,500 = 2.714
Days = 365/2.714 = 134 days
C) Cash cycle = Days of Sales Outstanding + Days of Inventory Outstanding - Days of Payables Outstanding
= 146+148-134 = 160 days
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Gaming Systems are provided.
Required:
Assuming that all sales were on account, calculate the following
risk ratios for 2021. (Use 365 days a year. Round your
final answers to 1 decimal place.)
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Required:
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