Extracts from Annual Accounts of Jennifer Limited $ Inventories: Raw materials 108 000 Work in progress 75 600 Finished goods 86 400 Purchases of raw materials 518 400 Cost of production 675 000 Cost of goods sold 756 000 Sales 864 000 Accounts receivables 172 800 Accounts payables 86 400 Calculate the length of the working capital cycle or net operating cycle (assume 365 days in the year).

Extracts from Annual Accounts of Jennifer Limited $ Inventories: Raw materials 108 000 Work in progress 75 600 Finished goods 86 400 Purchases of raw materials 518 400 Cost of production 675 000 Cost of goods sold 756 000 Sales 864 000 Accounts receivables 172 800 Accounts payables 86 400 Calculate the length of the working capital cycle or net operating cycle (assume 365 days in the year).

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 21BEB

See similar textbooks

Similar questions

48. From the following data compute the duration of the operating cycle for each of the two years and comment on increase or decrease. Rs. thousands year 1 year2 stocks : raw material 20 27 work-in process 14 18 finished goods 21 24 purchases 96 135 cost of goods sold 140 180 sales 160 200 debtors 32 50 creditors 16 18 Assume 360 days per year for computational purpose.
3 Quarter e Cash B A SoGood Candy Company is evaluating its quarterly working capital needs. Using the information below, calcuate the working capital, permanent working capital, and temporary working capital needs for the company. Accounts Receivable Inventory Accounts Payable Working capital Permanent W/C Temporary W/C 1 708 450 650 900 1 2 3 Annual Percentage Rate(APR) 4 Effective Annual Rate (EAR) 2 890 750 550 850 3 670 1200 700 1000 4 1250 800 400 1145 To meet the needs of temporary working capital, SoGood Candy Company has decided to issue commercial paper which will mature in 8 months. The commercial paper was issued for 1.6 millin and Othey received 1.5 million. What is the effective annual rate that they will pay for this loan?
Calculate the Gross and the Net Operating Cycle for Vishal & Co. Ltd. using the following information. (Assume 360 days in a year). Amt. in Rs. Opening Balances Raw Material 200,000 WIP 60,000 Finished Goods 600,000 Debtors 250,000 Creditors 550,000 Closing Balances Raw Material 300,000 WIP 65,000 Finished Goods 725,000 Debtors 215,000 Creditors 575,000 Annual Purchase of Raw Material 3, 200,000 Manufacturing Expenses 550,000 Selling & Distribution Costs 300,000 Sales 4,480,000
What is the average collection period for the year for company ERT ( show your work) Sales-$2,600(30% cash, 70% credit); Inventory-$700;Depreciation -$1,200; Plant & Equipment $3,000; Accounts Receivable - $245; Notes Payable- $155
7 A. During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. What is the asset turnover? Round to the nearest to the hundredth, two decimal places and submit the answer in a percentage.
Estimation of Working Capital Requirements using Ratios Compute Working Capital Requirements of a Company from the following information: 60 days Sales Average Collection Period Average Payment Period 75 days Gross Profit Inventory Holding Period (on the 90 days Credit Purchases basis of Cost of Goods Sold) Cash & Bank Balances 2.5% of Sales 1 Year The Company expects 50% Sales increment during the next year. €20,00,000 25% 1/3 of Cost of Goods Sold 360 days
From the following information calculate raw material storage period Annual raw material consumption Rs 27,000 Opening stock of raw material Rs 5,000 Closing stock of raw material Rs 4,000 Assume 1 year = 360 days O (A) 30 Days • (B) 45 Days (c) 90 Davs (D) Days
Income tax was $200,000 for the year. Income tax payable was $20,000 at the beginning of the year and $30,000 at end of the year. Cash payments for income tax reported on the cash flow statement using the direct method is: A.$200,000 B.$220,000 C.$230,000 D.$190,000 Conversion costs are a.direct materials and factory overhead b.direct materials and indirect labor c.factory overhead and direct labor d.direct materials and direct labor
Blue Elk Manufacturing Balance Sheet For the Year Ended on December 31 Assets Current Assets: Cash and equivalents Accounts receivable Liabilities Current Liabilities: $150,000 Accounts payable $250,000 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment(cost minus depreciation) $2,100,000 Total Debt $1,500,000 Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity Total Assets $3,000,000 Total Liabilities and Equity $1,500,000 $3,000,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Blue Elk Manufacturing generated $500,000 net income on sales of $14,500,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. Suppose Blue…
Calculate the sale-to-cash conversion period based on the following information: average inventories = $120,000; average receivables = $90,000; average payables = $40,000; cost of goods sold = $182,500; and net sales = $365,000. 180 days 90 days 60 days 45 days
A manufacturing company has the following information relating to its working capital and rates of turnover: Components of working Capital Value ZMK Raw materials Work in Progress Finished goods stock 17,810 24,660 37,260 Full-screen Snip Period between despatch and invoice to customer 2 days Trade debtors Trade creditors 219,180 113,970 Measures of annual turnover and throughput: Sales Cost of sales Material purchases ZMK2.0million ZMK1.7million ZMK1.3million Required: Calculate the working capital cycle (assume 365 days in a year, and assume that the value of work in progress is equal to the cost of material plus 50% of the cost of converting materials into finished goods).
Using the following information: a. Beginning cash balance on March 1, $77,000. b. Cash receipts from sales, $300,000. c. Cash payments for direct materials, $139,000. d. Cash payments for direct labor, $72,000. e. Cash payments for overhead, $43,000. f. Cash payments for sales commissions, $7,000 g. Cash payments for interest, $120 (1% of beginning loan balance of $12,000) h. Cash repayment of loan, $12,000. Prepare a cash budget for March for Gado Company. GADO COMPANY Cash Budget March Total cash available Less: Cash payments for Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance, end of month