Problem B: Cash Conversion Cycle ABC Corporation has P5,000,000 in inventory and P2,000,000 in accounts receivable. Its average daily sales are P100,000. The company has P1,500,000 in accounts payable. Its average daily purchases are P50,000. Required: 1. Days it takes to convert inventory to cash 2. Days payable outstanding 3. Cash Conversion Cycle in days

Problem B: Cash Conversion Cycle ABC Corporation has P5,000,000 in inventory and P2,000,000 in accounts receivable. Its average daily sales are P100,000. The company has P1,500,000 in accounts payable. Its average daily purchases are P50,000. Required: 1. Days it takes to convert inventory to cash 2. Days payable outstanding 3. Cash Conversion Cycle in days

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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Problem B: Cash Conversion CycleABC Corporation has P5,000,000 in inventory and P2,000,000 in accounts receivable. Its average daily sales are P100,000. Thecompany has P1,500,000 in accounts payable. Its average daily purchases are P50,000.Required:1. Days inventory outstanding (*Note: Because cost of sales is not available, you may use sales as alternative.)2. Days receivable outstanding3. Days it takes to convert inventory to cash
PROBLEM #8 The current assets of Trisikstin Enterprise consist of cash, accounts receivable and inventory. The following information is available. Credit sales 75% of total sales Inventory turnover Working capital Current ratio Quick ratio Average collection period Accounts Payable 5 times P1,120,000 2 to 1 1.25 to 1 42 days Turnover 10 times Working days 360 days Compute for the following: 1. The estimated inventory amounts 2. Cash conversion cycle
3. BMC Co. has an average A/R balance of P1,250,000, average inventory balance of P1,750,000, and average accounts payable balance of P800,000. Its annual sales are P12,000,000 and its cost of goods sold represents 80% of annual sales. Assume there are 365 days in a year. What is BMC Co.'s cash conversion cycle? A. 53.23 days B. 60.83 days C. 72.28 days D. 84.15 days E. 100.55 days
5. Using the given, compute the cash conversion cycle of the entity. Beginning Ending Average P 300,000 P 350,000 P 325,000 200,000 Trade receivables 800,000 ??? Inventory Trade payables 300,000 ??? 650,000 For the year Sales (all on credit) P 2,600,000 Purchases 1,950,000 Your answer 7. Interpret the given and the cash conversion cycle. Provide points of improvement. Be specific. Answer in three to five sentences. Your answer
Using the given, compute the cash conversion cycle of the entity. Use 360 days in a year Beginning Ending Average Trade recievables 300,000 350,000 325,000 Inventory 200,000 800,000 ??? Trade payables 300,000 ??? 650,000 For the year Sales(all on credit) 2,600,000 Purchases 1,950,000 Interpret the given and the cash conversion cycle.
Calculate Cash Conversion Cycle (CCC) from the following; Average collection period 30 Average payment period - 20 Average inventory -6,000 COGS per day - 150 a. 70 days b. 90 days c. 30 days d. 50 days
Fast pls solve this question correctly in 5 min pls I will give u like for sure Savtk Hanse, Inc., has a cash cycle of 45 days, an operating cycle of 66 days, and an inventory period of 28.5 days. The company reported cost of goods sold in the amount of $345,000, and credit sales were $568,000. What is the company’s average balance in accounts payable and accounts receivable? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Whaley & Whaley has the following data. What is the firm's cash conversion cycle? Inventory conversion period = Average collection period = Payables deferral period = O a. 37 days O b. 31 days O c. 41 days Od: 45 days O e. 34 days 41 days 31 days 38 days
Question Content Area Cash and accounts receivable for Adams Company are as follows: Line Item Description Current Year Prior Year Cash $51,246 $43,800 Accounts receivable (net) 17,596 33,200 What is the amount and percentage of increase or decrease that would be shown with horizontal analysis? Enter a decrease using a minus sign before the amount and the percentage. Account Dollar Change Percent Change Effect Cash $fill in the blank 1 fill in the blank 2 % Accounts Receivable $fill in the blank 4 fill in the blank 5 %
10 A trader provided the following information: Payables: opening balance = $4,000; closing balance = $5,000. Payments made = $20,000 Receivables: opening balance = $7,000; closing balance = $9,000. All sales are on credit. Inventory: opening balance = $5,500; closing balance = $2,500. Gross profit margin = 25% How much cash has been collected from the customers? Cash collected from the customers during the year was $32,000. Cash collected from the customers during the year was $28,000. Cash collected from the customers during the year was $26,000. Cash collected from the customers during the year was $30,000.
QUESTION 7 Claculate Delta Airlines' Cash COnversion Cycle based on the following information: Sales 260,028 COGS 213,500 Accounts Receivable 35,917 Inventory 4,253 Accounts Payable 59,583
Question 9 Cash conversion cycle = (Inventory Days + Accounts Receivable Days – Accounts Payable Days). Which of the following would decrease a firm’s cash conversion cycle? Increase the accounts payable days Increase the inventory days Increase the accounts receivable days Increase the cash days