What is Average Age of Accounts Payable for the period ending March 31 2016 based on the data provided in the following Tables?
A) 58
B) 90
C) 99
D) 47
Average age of account payable= average account payable× 365/ (cost of constructions)
Cost of construction is Total direct materials cost (cost of Goods sold)
Average account payable= beginning account payable + ending account payable/2
Average account payable= (560,000+475,000+ 1,270,000+ 400,000) /2= 1, 352,500
Average age of account payable= 1,352,500× 365/9,000,000 = 58
What is Average Age of Accounts Payable for the period ending March 31 2016 based on...
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
QUESTION 1 David Pty Ltd has accounts receivable of $68,300 at 31 March 2016. An analysis of the accounts shows the following amounts. Balance, 31 March Month of sale 2016 2015 March February December and January November and October $39,100 12,800 9,300 7,100 $68,300 $74,400 7,500 2,400 1,100 $85,400 Credit terms are 2/7, n/30. At 31 March 2016 there is a $1,690 credit balance in allowance for doubtful debts before adjustment. The entity uses the ageing of accounts receivable basis...
The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month period ending March 31, 2016, are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 2,700 $50.00 $135,000 10 Purchase 7,300 58.00 423,400 28 Sale 4,050 100.00 405,000 30 Sale 1,200 100.00 120,000 Feb. 5 Sale 500 100.00 50,000 10 Purchase 17,000 60.00 1,020,000 16 Sale 9,200 105.00 966,000 28 Sale 8,000 105.00 840,000 Mar. 5 Purchase 14,300 61.60 880,880...
Sweet Acacia Industries has accounts receivable of $97,200 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $1,891 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Balance, March 31 Estimated Percentage Age of Accounts 2017 2016 Uncollectible Current $64,800 $79,610 2% 1-30 days past due 13,800 7,710 5 31-90 days past...
Coronado Industries has accounts receivable of $89,200 at March 31, 2017. At March 31, 2017, there is a $2,151 balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company’s estimates of bad debts are as shown below. Balance, March 31 Estimated Percentage Uncollectible Age of Accounts 2017 2016 Current $60,400 $80,160 2 % 1–30 days past due 12,000 8,610 5 31–90 days past due 10,200 2,400 31 Over 90...
Route Canal Shipping Company has the following schedule for
aging of accounts receivable:
Age of Receivables
April 30, 20X1
(1)
(2)
(3)
(4)
Month of
Sales
Age of
Account
Amounts
Percent of
Amount Due
April
0–30
$
253,750
_______
March
31–60
145,000
_______
February
61–90
217,500
_______
January
91–120
108,750
_______
Total receivables
$
725,000
100%
a. Calculate the percentage of amount due for each
month.
b. If the firm had $1,740,000 in credit sales over
the four-month period, compute...
Compute the Accounts Payable (A/P) period based on the following information: Average A/P balance = $53204 Annual Cost of Goods Sold = $218177 Assume 365 days
Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 2013 (1) (2) (3) (4) Month of Sales Age of Account Amounts Percent of Amount Due April................................. 0–30 $ 131,250 ____ March............................... 31–60 93,750 ____ February........................... 61–90 112,500 ____ January............................. 91–120 37,500 ____ Total receivables............ $ 375,000 100% a. Fill in column (4) for each month. b. If the firm had $1,500,000 in credit sales over the four-month period,...
What is not required to calculate the Cash Demand Period? A) Average Age of Under-billings (AAU) B) Average Age of Subcontracts Payable (AASP) C) Average Age of Over-billings (AAO) D) Cash Conversion Period (CCP)
38. Inmoo Company's average age of accounts receivable is 45 days, the average age of accounts payable is 35 days, and the average age of inventory is 60 days. Assuming a 365-day year, what is the length of its cash conversion cycle? a. 63 days b. 65 days c. 70 days d. 75 days e. 78 days