Based on the following information, determine the venture's inventory-to-sale conversion period: cash conversion cycle = 250 days; sale-to-cash conversion period = 60 days; and purchase-to-payment conversion period = 70 days. 70 days 140 days 240 days 260 days

Based on the following information, determine the venture's inventory-to-sale conversion period: cash conversion cycle = 250 days; sale-to-cash conversion period = 60 days; and purchase-to-payment conversion period = 70 days. 70 days 140 days 240 days 260 days

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9EB: Using the following select financial statement information from Mover Supply Depot, compute the...

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

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conversion period of 35 days, and payable conversion period of 26 days. orin Company has an inventory conversion period of 66 days, a receivable 1. Calculate the firm's operating cycle. 2. Calculate the firm's cash conversion cycle. Write your answer here.
ABC Inc. has the following data. What is the firm's cash (conversion) cycle? Inventory Conversion Period = 38 days Receivables Collection Period = 19 days Payables Deferral Period = 26 days
A company has an average age of inventory (AAI) 55 days; average collection period (ACP)20 days and average payment period (APP) is 10 days. Calculate the following details of thecompany.A. Operating Cycle (OC)B. Cash Conversion Cycle (CCC)
22) A firm has the following data: Inventory conversion period = 75 days Average collection period = 32 days Payables deferral period = 45 days What is the firm's cash conversion cycle? 1. 5 days. 2. 40 days. 3. 62 days. 4. 88 days. 5. 15 days.
What is the inventory period for a firm with an annual cost of goods sold of P5million, P1.2 million in average inventory, and a cash conversion cycle of 75days?
Calculate the sale-to-cash conversion period based on the following information: average inventories = $120,000; average receivables = $90,000; average payables = $40,000; cost of goods sold = $182,500; and net sales = $365,000. 180 days 90 days 60 days 45 days
12) Oman ceramics LLC has average inventory conversion period of 72 days, average payment period of 62.5 days, cash conversion cycle of the company is 90 days. Find out the Average collection period of the company? a. + 96.5 days b. + 80.5 days c. + 99.5 days d. – 80 days
Zane Corporation has an inventory conversion period of 64 days,an average collection period of 28 days, and a payables deferral period of 41 days.a. What is the length of the cash conversion cycle?b. If Zane’s annual sales are $2,578,235 and all sales are on credit, what is the investmentin accounts receivable?c. How many times per year does Zane turn over its inventory? Assume that the cost ofgoods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio.
If a firms inventory level of $10,000 represents 30 days sales, what is the annual cost od goods sold? What is the inventory turnover rate?
Calculate the inventory-to-sale conversion period based on the following information: average inventories = $120,000; average receivables = $90,000; average payables = $40,000; cost of goods sold = $182,500; and net sales = $365,000. 240 days 180 days 90 days 60 days
1. The following information has been calculated for ABC Co: 52 days 42 days Trade receivables collection period Raw material inventory turnover period Work in progress inventory turnover period 30 days Trade payables payment period Finished goods inventory turnover period 45 days 66 days What is the length of the net operating cycle?
Find cash conversion cycle. Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days a. 46 days b. 31 days c. 42 days d. 38 days e. 34 days