Cash conversion cycle: Devon Automotive management estimates that it takes the company 62 days to collect cash from customers on finished goods from the day it receives raw materials, and it takes 65 days to pay its suppliers. What is the company's cash conversion cycle? Interpret your answer.
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3. [EXCEL] Cash conversion cycle: Devon Automotive management estimates that it takes the company 62 days to collect cash from customers on finished goods from the day it receives raw materials, and it takes 65 days to pay its suppliers. What is the company's cash conversion cycle? Interpret your answer.
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- Refer to the following data of Good Food Snack House (in the photo) _____22. What is their Cash Conversion Cycle if their Operating Cycle is 135 days?A. 104 days B. 105 days C. 106 days D. 107 days _____23. What is the Average Inventory of Good Food Snack House?A. Php 1,067,570 B. Php 1,607,057 C. Php 1,765,070 D. Php 5,017,657[EXCEL] Cash conversion cycle: Northern Manufacturing Company management found that during the last year it took an average of 47 days to pay its suppliers, whereas it took 63 days to collect its receivables. The company's days' sales in inventory was 49 days. What was Northern's cash conversion cycle? pleas use excel.CAN SOMEONE HELP ME WITH THIS QUESTION? Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers. Assume net sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable, inventories, and accounts payable. What would be the net financing need considering only these three accounts? *Note: To solve this problem, you will need to first find the Inventory Period, the Receivables Period, and the Payment Period. A. $153,054.79 B. $154,054.79 C. $152,054.79 D. $152,154.80
- Customers as a Cost ObjectMorrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, mediumbalances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Required:(Note: Round answers to two decimal places.)1. Calculate a cost per account per year by dividing the total cost of processing andmaintaining checking accounts by the total number of accounts. What is the average feeper month that the bank should charge to cover the costs incurred because of checkingaccounts?2. Calculate a cost per account by customer category by using activity rates.3. Currently, the bank offers free checking to all of its customers. The interest revenuesaverage $90 per account; however, the interest revenues earned per account by categoryare $80, $100, and $165 for the low-, medium-, and high-balance…Bob's Product Company takes 20 days to convert its raw materials to finished goods, 15 days to sell it, and 25 days to collect its credit sales. What is the company’s days receivable period? Group of answer choices 60 35 25 10 15 A bank letter of credit, sometimes called a standby letter of credit, is a written promise by a bank that it will make a payment on behalf of the customer. This is different than a line of credit, which is a akin to a credit card….a line of credit allows the company to borrow funds as needed to pay any bills. A LETTER of credit is specific to the party that the company might owe money to. Group of answer choices True FalseQuestions: What is the minimum transfer price that the repair division should obtain for its services, assuming it is operating at capacity? P 28.50 per hour P 30.00 per hour P 48.00 per hour What is the maximum price the management division should pay? P 28.50 P 30.00 P 48.00 If the repair division has idle capacity, what is the minimum transfer price that the repair division should obtain? P 28.50 P 30.00 P 48.00
- Suppose that Lou sells 9,000 wheels each month to outside customers. If the transfer pricing formula is used to find the transfer price, what is the appropriate price per wheel? A. P29.50 B. P31.75 C. P39.25 D. P42.00Show your complete solution. Europe Bakery is one of Spains’s largest baking needs suppliers. They usually sell on credit and on the usual terms, it takes 60 days for a customer receivable to be collected. Due to the in-demand nature of Europe Bakery’s products, it only takes 25 days to sell its supplies after being purchased from the supplier. On the other hand, they make use of a 30-day period before it pays its obligations to its suppliers. Compute for cash conversion cycle of the Europe Bakery.Texas Rex sells t-shirts. Expected sales for each quarter is 1000, 1200, 1500, and 2000 t-shirts at $10.00 each. They anticipate no price change. Texas Rex expects the following Cash Receipts in each quarter: Q1 Q2 Q3 Q4 $10,600 $11,850 $14,775 $19,625 Texas Rex believes the amount of cash needed for payments on account for raw materials each quarter is: Q1 Q2 Q3 Q4 $4,594 $5,039 $6,219 $6,819 The Cash Budget is critically important to the survival of businesses. It tells management how much cash is available and shortfalls of cash need to be anticipated and handled through expense reductions or financing. Assume that Texas Rex’s beginning cash balance is $5200. The company requires a $1000 minimum cash balance…
- Customers as a Cost Object Morrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Additional data concerning the usage of the activities by the various customers are also provided: Required: (Note: Round answers to two decimal places.) 1. Calculate a cost per account per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts. What is the average fee per month that the bank should charge to cover the costs incurred because of checking accounts? 2. Calculate a cost per account by customer category by using activity rates. 3. Currently, the bank offers free checking to all of its customers. The interest revenues average 90 per account; however, the interest revenues earned per account by category are 80, 100, and 165 for the low-, medium-, and high-balance accounts, respectively. Calculate the average profit per account (average revenue minus average cost from Requirement 1). Then calculate the profit per account by using the revenue per customer type and the unit cost per customer type calculated in Requirement 2. 4. CONCEPTUAL CONNECTION After the analysis in Requirement 3, a vice president recommended eliminating the free checking feature for low-balance customers. The bank president expressed reluctance to do so, arguing that the low-balance customers more than made up for the loss through cross-sales. He presented a survey that showed that 50% of the customers would switch banks if a checking fee were imposed. Explain how you could verify the presidents argument by using ABC.1. If you have the following information about ice-cream manufacturing unit Year Net Discount rate Returns 10% 2500 1. 700 0.909 -1000 0.826 3. 1450 0.751 1200 0.683 1700 0.621 6. 1350 0.564 7. -750 0.513 450 0.467 6. 1300 0.424 10 900 0.386 Calculate a) Discounted Payback period b) IRR and if the hurdle rate 35%, shall we accept the project or not ? Why? ) NPVExercise 10-32 (Algo) Activity-Based Costing of Customers (LO 10-3, 4) Northwestern Bank (NB) offers only checking accounts. Customers can write checks and use a network of automated teller machines. NB earns revenue by investing the money deposited; currently, it averages 4.1 percent annually on its investments of those deposits. To compete with larger banks, NB pays depositors 0.3 percent on all deposits. A recent study classified the bank's annual operating costs into four activities. Activity Using ATM Visiting branch Processing transactions Managing functions Total overhead Cost Driver Number of uses Number of visits Number of transactions Total deposits Cost $ 1,936,800 1,900,800 8,521,920 7,321,600 $ 19,681,120 Driver Volume 3,228,000 uses 396,000 visits 129,120,000 transactions $ 615,035,000 in deposits Data on two representative customers follow: Emily Jacob ATM uses 40 130 Branch visits 5 Number of transactions Average deposit 200 45 520 $ 10,000 $ 10,000