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NOTE: please use the given formula. Thank you.

NOTE: please use the given formula. Thank you.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 11PA: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,...
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NOTE: please use the given formula. Thank you.
GIVEN FORMULAS: Sales Accounts receivable turnover = Accounts Receivable 365 Average collection period = Accounts Receivable Turnover Cost of goods sold Inventory turnover = Inventory 365 Average age of inventory = Inventory Turnover Purchases Accounts payable turnover = Inventory 365 Average payment period = Accounts Payable Turnover Operating Cycle = Average Collection Period + Average Age of Inventory Cash Conversion Cycle = Average collection period + Average age of inventory -Average age of payables OR Cash Conversion Cycle = Operating Cycle -Average Age of Payables %3D
Transcribed Image Text:GIVEN FORMULAS: Sales Accounts receivable turnover = Accounts Receivable 365 Average collection period = Accounts Receivable Turnover Cost of goods sold Inventory turnover = Inventory 365 Average age of inventory = Inventory Turnover Purchases Accounts payable turnover = Inventory 365 Average payment period = Accounts Payable Turnover Operating Cycle = Average Collection Period + Average Age of Inventory Cash Conversion Cycle = Average collection period + Average age of inventory -Average age of payables OR Cash Conversion Cycle = Operating Cycle -Average Age of Payables %3D
Practice B. I Total asset is PHP750,000. Sales is PHPI,500,000. What is the total asset turnover? 2. Accounts receivable turnover is 4. What is the average collection period assuming annual data are used? What is the average collection period assuming quarterly data are used? 3. Sales for the year amount to PHP100,000. Accounts receivable amount to PHP12,000. What is the average collection period assuming annual data are used? What is the average collection period assuming quarterdy data are used? 4. The quick ratio is 1.7 while the current ratio is 2.5. The current liabilities amount to PHP5,000. Cost of goods sold is PHP52,500. What is the inventory turnover? Average age of inventory? 5. Beginning inventory is PHP2,000 while ending inventory is PHP5,000. Cost of goods sold is double the ending inventory and accounts payable is PHP4,000. What is accounts payable turmover? Average payment period? 6. Ending inventory is PHP13,000 while accounts payable is PHP2,500. Purchases were half the ending inventory. What is accounts payable turnover? Average age of payables? 7. Current assets amount to PHP30,000 while noncurrent assets are PHP50,000. Sales amount to PHP200,000. What is the total asset turnover? 8. Based on your answers from letters c, d, and e, what is the operating cycle of the company? Cash conversion cycle?
Transcribed Image Text:Practice B. I Total asset is PHP750,000. Sales is PHPI,500,000. What is the total asset turnover? 2. Accounts receivable turnover is 4. What is the average collection period assuming annual data are used? What is the average collection period assuming quarterly data are used? 3. Sales for the year amount to PHP100,000. Accounts receivable amount to PHP12,000. What is the average collection period assuming annual data are used? What is the average collection period assuming quarterdy data are used? 4. The quick ratio is 1.7 while the current ratio is 2.5. The current liabilities amount to PHP5,000. Cost of goods sold is PHP52,500. What is the inventory turnover? Average age of inventory? 5. Beginning inventory is PHP2,000 while ending inventory is PHP5,000. Cost of goods sold is double the ending inventory and accounts payable is PHP4,000. What is accounts payable turmover? Average payment period? 6. Ending inventory is PHP13,000 while accounts payable is PHP2,500. Purchases were half the ending inventory. What is accounts payable turnover? Average age of payables? 7. Current assets amount to PHP30,000 while noncurrent assets are PHP50,000. Sales amount to PHP200,000. What is the total asset turnover? 8. Based on your answers from letters c, d, and e, what is the operating cycle of the company? Cash conversion cycle?
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