$ millions Total revenue GIS $14,597.0 $16,790.0 Cost of sales and services 9,871.0 10,312.9 Average accounts receivable Average inventory 1,382.0 2,607.0 2,324.0 1,562.9 Average accounts payable 2,348.0 3,483.0 Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. a. Compute the following measures for both companies. 1. Days sales outstanding (DSO) Company K GIS DSO 34.56 56.67 2. Days inventory outstanding (DIO) Company K DIO 85.9 55.3 GIS 3. Days payable outstanding (DPO) Company K GIS DPO 86.8 123.3 4. Cash conversion cycle (CCC) Company K GIS ссс 33.66 (11.33) Question Company b. Which company better manages its accounts receivable? K c. Which company uses inventory more efficiently? GIS ÷ d. Which company better manages its accounts payable? GIS

$ millions Total revenue GIS $14,597.0 $16,790.0 Cost of sales and services 9,871.0 10,312.9 Average accounts receivable Average inventory 1,382.0 2,607.0 2,324.0 1,562.9 Average accounts payable 2,348.0 3,483.0 Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. a. Compute the following measures for both companies. 1. Days sales outstanding (DSO) Company K GIS DSO 34.56 56.67 2. Days inventory outstanding (DIO) Company K DIO 85.9 55.3 GIS 3. Days payable outstanding (DPO) Company K GIS DPO 86.8 123.3 4. Cash conversion cycle (CCC) Company K GIS ссс 33.66 (11.33) Question Company b. Which company better manages its accounts receivable? K c. Which company uses inventory more efficiently? GIS ÷ d. Which company better manages its accounts payable? GIS

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 7SEB: JOURNALIZING SALES RETURNS AND ALLOWANCES Enter the following transactions starting on page 60 of a...

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engageNOWv2 | Online teachir X * CengageNOWv2| Online teachir x .com/ilrm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogre. * A eBook Show Me How Accounts Receivable Analysis A company reports the following: Sales $671,600 Average accounts receivable (net) 67,160 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables days Previous Next Check My Work 11:16 AM 67°F Sunny A O E D a ) 12/3/2021 n sc hone backsoce
At what amount will accounts receivable be reported on the balance sheet if the gross receivable balance is $42,500 and the allowance for uncollectible accounts is estimated at 16% of gross receivables? Select one: a. $42,500 b. $35,700 c. $28,900 d. $6,800
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PA5. 7.4 Brown Inc. records purchases in a purchases journal and purchase returns in the general journal. Record the following transactions using a purchases journal, a general journal, and an accounts payable subsidiary ledger. The company uses the periodic method of accounting for inventory. Oct.1 Purchased inventory on account from Price Inc. for $2,000 Oct.1 Purchased inventory on account from Cabrera Inc. for $3,000 Oct.8 Returned half of the inventory to Price Inc. Oct.9 Purchased inventory on account from Price Inc. for $4,200