Loblaw's company executive assistant is given a task to determine the cash conversion cycle of the company. The following 2016 Income statement and balance sheet Information is as follows. Assume there are 365 days in a year. Sales $32,341 Cost of merchandise Inventory sold $15,594 Inventories $2084 Accounts receivables $782 Accounts payable $3689 Calculate the Cash conversion cycle of the company. The Cash conversion cycle is -28.74. The Cash conversion cycle is -128.74. The Cash conversion cycle is 125.10. The Cash conversion cycle is 143.95.

Loblaw's company executive assistant is given a task to determine the cash conversion cycle of the company. The following 2016 Income statement and balance sheet Information is as follows. Assume there are 365 days in a year. Sales $32,341 Cost of merchandise Inventory sold $15,594 Inventories $2084 Accounts receivables $782 Accounts payable $3689 Calculate the Cash conversion cycle of the company. The Cash conversion cycle is -28.74. The Cash conversion cycle is -128.74. The Cash conversion cycle is 125.10. The Cash conversion cycle is 143.95.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

See similar textbooks

Similar questions

Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
Your boss asks you to compute your company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $24,800, accounts receivable averaged $18,700, and accounts payable averaged $16,100. You also see that the company had sales of $138,000 and that cost of goods sold was $110,400. Calculate firm's cash conversion cycle. (Use 365 days for calculation. Round intermediate calculations and final answer to 1 decimal place, e.g. 15.1.)
A company collected $100,000 cash from a customer who both received and was billed for the goods last quarter. Which of the following items would be increased by this cash collection transaction? (check all that apply) Cash from Operations Accounts Receivable Current Assets Cash Revenue
Mash Inc. had cost of goods sold of $114,000 for the just completed year. Shown below are the beginning and ending balances of various Mash accounts: Cash $60,000 $47,000; Accounts receivable $86,000 $96,000; Inventory $47,000 $54,000; Accounts payable $29,000 $13,000; Retained earnings $82,000 $5,000 ; Mash prepares its statement of cash flows using the direct method. On its statement of cash flows, what amount should Mash show for its cost of goods sold adjusted to a cash basis (i.e., cash paid to suppliers)? * $91,000 $123,000 $137,000 $147,000
View the data below and then answer the question below: Company Name: WaitRose Sales - $2,100 (20% cash, 80% credit) Inventory - $750 Depreciation - $1,500 Plant & Equipment - $2,000 Accounts Receivable - $225 Notes Payable - $165 Question: What is the average collection period for the year for Waitrose? (show your work and explain)
ces Given the following information, complete the balance sheet shown next. Collection period Days' sales in cash Current ratio Inventory turnover Liabilities to assets Payables period Assets Current assets: Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets (All sales are on credit. All calculations assume a 365-day year. The payables period is based on cost of goods sold.) Note: Round your answers to the nearest whole dollar. Liabilities and shareholders' equity Current liabilities: 71 days 33 days 2.2 times Accounts payable Short-term debt Total current liabilities Long-term debt Shareholders' equity Total liabilities and equity 5 65% 35 days $ $ 1,300,000 2,000,000 7,000,000
The following information is available for Carla Vista Products: Accounts receivable Cost of goods sold Inventory (ending) Net cash provided by operating activities Net sales Capital expenditures Dividends Accounts receivable turnover 2014 Average collection period $70,800 623,040 61,360 259,600 1,067,310 47,200 28,674 2013 $87,320 684,400 days 80,240 200,600 1,109,200 Compute the following for 2014: (Round answers to 1 decimal place, e.g. 52.7. Use 365 days for calculation.) 44,840 37,760 times =SUPPORT
Use the following data to answer Questions 13 through 19. (Answers may be rounded off.) Alpha Company Sales 6000 Cost of goods sold 3500 Average Inventories 620 Accounts receivable Working capital. 740 Cash 450 200 Accounts payable 550 Fixed assets 4680 Total assets 5900 Annual purchases 2300 19. Alpha's cash conversion cycle is a. 35 days b. 107 days. c. 46 days d. 16 days. I I
Duke Company reported cost of goods sold last year of $270,000 on its income statement. Additional information concerning the company's closing and opening account balances last year follows: Inventory $60,000 $45,000 Accounts payable $26,000 $39,000 Duke Company uses the direct method to determine the net cash provided by operating activities on its statement of cash flows. What amount should Duke report as cash paid to suppliers in its statement of cash flows for last year?
Bucknell, Inc. uses the calendar year as its fiscal year. Determine the total net cash flow recorded at the end of the fiscal year. Month Receipts, $1000 Disbursements, $1000 Jan 300 500 Feb 950 500 Mar 200 400 Apr 120 400 May 600 500 June 900 600 July 800 300 Aug 900 300 Sept 900 200 Oct 500 400 Nov 400 400 Dec 1800 700
Serven Corporation has estimated its accrual-basis revenue and expenses for June 2017 and would like your help in estimating cash disbursements. Selected data from these estimated amounts are as follows: Sales: $700,000 Gross Profit (based on sales): 30% Increase in trade accounts recievable for the month: $20,000 Change in accounts payable during month: $0 Increase in inventory during month: $10,000 Variable selling, general, and administrative expenses include a charge for uncollectible accounts of 1% of sales. Total selling, general, and administrative expenses are $71,000 per month plus 15% of sales. Depreciation expense of $40,000 per month is included in fixed selling, general, and administrative expense. Required: On the basis of the preceding data, what are the estimated cash dispursements from operations for June?
Adams Company is preparing their financial statements for the year ended December 31, 2022. During the year, Adams sold inventory for $52,500 on credit and $75,000 for cash. In addition to sales, Adams had the following account balances at year end Cash Accounts Receivable Sales Discounts Inventory Accounts Payable Deferred Revenue Salary Expense Rent Expense Interest Expense Dividends Tax Expense Cost of Goods Sold What are net sales? $17,500 7,800 15,000 22,800 5,400 4,800 21,000 6,000 2,200 2,000 7,000 51,000