Watts Industries' carries 87 days in Inventory, and collects its Accounts Receivable in 75 days. If the firm pays its Accounts Payable in 26 days, what is Watts' Cash Conversion Cycle?

Q: Lowell Inc.has $5 million in inventory, $2 million in accounts receivable, and 1.5 million in…

A: Cash conversion cycle is an important financial ratio. This ratio shows the amount of time that a…

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Q: Need help please provide answer

A: Operating cycle = ((Inventory * 365 days) / Cost of goods sold) + ((Accounts Receivable * 365 days)…

Q: Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory Conversion…

A: Cash conversion cycle indicates the period taken by a firm to convert it's products into…

Q: BSW & Company has the following data.   What is the firm's cash conversion cycle?   Inventory…

A: The cash conversion cycle (CCC) is a measure of a company's efficiency in managing its working…

Q: ABCD Corporation has credit sales of $8,460,000 and receivables of $1,260,000. Assume there are 365…

A: Ratio analysis is one of useful technique used. Under this, various calculations are done on…

Q: Colby's Manufacturing Company management found that during the last year it took an average of 43…

A: Solution: Cash conversion cycle = Days of inventory outstanding + Days sales outstanding - Days…

Q: Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D.…

A: Sequential payment CMOs are treated as collateralized mortgage obligations, including the…

Q: CCC Corp. has annual turnovers of inventory, receivables, and payables of 12,18, 8 respectively.…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Skylark Industries has P6,000,000 in inventory and P3,000,000 in accounts receivable. The company…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

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Q: Your boss asks you to compute your company's cash conversion cycle. Looking at the financial…

A: Average inventory$24,800Accounts receivables averaged$18,700Accounts payables…

Q: Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D.…

A: A principal payment is a contribution made to the loan's outstanding balance. There are various…

Q: a.  How long is cash typically tied up in inventories? (Show computations) b.   What would be the…

A: a)-The Inventory conversion period In the question it takes 80 days to collect the sales receivable…

Q: Suppose that Freddie's Fries has annual sales of $620,000; cost of goods sold of $495, 000; average…

A: Approach to solving the question:Please see attached photos for the detailed solutions. Thank you.…

Q: ABCD Corporation has credit sales of $10,290,000 and receivables of $1,560,000. Assume there are 365…

A: In this we have to calculate the receivable turnover ratio using the formula.

Q: The following financial information relates to XYZ Company: Inventory turnover: 5 times Accounts…

A: Operating cycle measures the time taken by a company to convert its inventory into cash. Operating…

Q: Which one of the following statements is correct if a firm has a receivables turnover of 10? It…

A: In this question, we are required to determine the correct statement related to receivables turnover…

Q: Han Corp's sales last year were $300,000, and its year-end receivables were $49,000. The firm sells…

A: The objective of the question is to find out the average number of days late that customers pay…

Q: 2. Tortellini Inc. payables policy is being revised. It has an annual overall sales of P50,735,000,…

A: Following is the answer to the given question

Q: ; 80% of Nadak's accounts receivable are paid within the discount period.   Required: a. What is…

A: Given : Annual credit sales  total $337.3 million.  2.25% cash discount for payment within 10 days…

Q: A firm has no cash sales (all sales are on credit and are collected 28 days after the sale). If the…

A: Average collection period is one of efficiency ratio which is used in business. This shows time…

Q: Zane Corporation has an inventory conversion period of 48 days, an average collection period of 26…

A: Cash conversion cycle(CCC) will be CCC =Inventory conversion period + Average collection period…

Q: ntonio is an analyst at Barrilla Group. The firm turns over its inventory 5 times each year. It has…

A: Cash conversion cycle tells that how much period is required to collect money from customer and…

Q: Tommy Textiles Limited estimates that it takes the company 27 days on average to pay off its…

A: Part-1Number of days of outstanding Inventory64Number of days for outstanding sales32Number of days…

Q: Westerly Industries has the following financial information. What is its cash conversion cycle?…

A: The cash conversion cycle refers to the number of days required to convert the cash that is spent on…

Q: If a company has a cash cycle of 30 days and an operating cycle of 92 days, what is its average…

A: The average payment period is the time taken by the firm to pay off its accounts payables. Accounts…

Q: Assume a firm has a cash cycle of 54 days and an operating cycle of 77 days. What is its payables…

A: Operating cycle :— It is the sum of days in receivable and days in inventory.    Cash Cycle :— It is…

Q: Skylark Industries has P6,000,000 in inventory and P3,000,000 in accounts receivable. The company…

A: GIVEN  INVENTORY=P6000,000ACCOUNTS RECEIVABLES=P3000,000SALES=P100,000DPO=30 DAYS

Q: On average your firm sells $33,100 of items on credit each day. Your average inventory period is 35…

A: Answer:- Operating cycle meaning:- The company's operational efficiency is gauged by the operating…

Q: For the Bayer Company, the average age of accounts receivable is 60 days, the average age of…

A: Step 1: Step 2: Step 3: Step 4:

Q: Parramore Corp has $17 million of sales, $3 million of inventories, $2.25 million of receivables,…

A: Step 1: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: Assume a firm has a cash cycle of 38 days and an operating cycle of 63 days. What is its average…

A: The cash cycle and operating cycle are both important financial metrics that help businesses…

Q: Paradise Retailers, Inc. (PRI) determined that $1,500,000 is needed for cash transactions made…

A: Baumol model is the cash management model that helps in managing the excess funds by using optimum…

Q: a) Calculate the firm’s operating cycle.  b) Calculate the firm’s cash conversion cycle c) Calculate…

A: The operating cycle of the company means the cycle in which the operating activities of the business…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.