2016201720182019700 | £1. What this ratio tells us about?Number of days ofpayables (purch.)Accounts payable695690 |£685Purchase on credit /36510112. Do you like the situation in this company?87.50 days77.22 days69.00 days62.27 days3. What are your recommendationd to improve the situation?

The question is related to creitors payment period. The details are given for 2016 to 2019.

2016 2017 2018 2019 Accounts payable 1. What this ratio tells us about? dumber of days of payables (purch.) 700 695E 690 685 Purchase on credit/ 365 10 E 11 2. Do you like the situation in this company? 87.50 days 77.22 days 69.00 days 62.27 days 3. What are your recommendationd to improve the situation?

2016 2017 2018 2019 Accounts payable 1. What this ratio tells us about? dumber of days of payables (purch.) 700 695E 690 685 Purchase on credit/ 365 10 E 11 2. Do you like the situation in this company? 87.50 days 77.22 days 69.00 days 62.27 days 3. What are your recommendationd to improve the situation?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4: Preparing And Using Financial Statements

Section: Chapter Questions

Problem 1bM

See similar textbooks

Similar questions

Choose the correct letter of answer: The following data applies to a firm: Interest Charges P10 Million, Sales/CGS P80 Million, Tax Rate 50% and Net profit margin 10%. What is the firm's interest covered ration? a. 1.6b. 2.6c. 3.6d. 4.6e. 5.6
Q4 : ( A ) Assume that The average monthly sales of company ( x ) is $ ( 45000 ) and The average monthly receivable account is $ ( 10000 ) Days , sales outstanding Find the days , sales outstanding
which one is correct please confirm? Q4: How much interest is earned on a euroJPY deposit of JPY3 billion paying 0.58%pa for 273 days? "JPY13,195,000" "JPY13,014,000" "JPY25,476,562.50" "JPY25,566,562.50"
which one is correct please confirm? Q10: "If I invested GBP9 million in the deposit market for 182 days and received GBP9,460,000 at the end of the period, at what rate did I invest my money?" 10.25% 10.10% 4.75% 4.89%
Salma Corporation sells on terms of net/90. Their accounts receivable are on average 20 days past due. If annual credit sales are P800,000, what is the company’s average investment in accounts receivable? choose the letter of correct answera. P44,444.00b. P144,444.00c. P224,444.00d. P244,444.00e. P344,444.00
The following quotations are available to you. CAD 1.2610/USD, Euro 0.8309/USD, CAD 1.5/Euro Assume that you have an initial $1,000,000. Is triangular arbitrage possible? If so, explain the steps and compute your profit.
Installment sales ??Cost of sales 600,000660,000Installment receivable - 20x1600,000400,000Installment receivable - 20x2720,000Gross profit rates based on sales40%45%How much is the total realized gross profit in 20x2?
A credit analyst is evaluating the solvency of Alcatel-Lucent (Euronext Paris: ALU) asof the beginning of 2010. Th e following data are gathered from the company’s 2009annual report (in € millions):2009 2008Total equity 4,309 5,224Accrued pension 5,043 4,807Long-term debt 4,179 3,998Other long term liabilities* 1,267 1,595Current liabilities* 9,050 11,687Total equity + Liabilities (equals Total assets) 23,848 27,311*For purposes of this example, assume that these items are non-interest bearing, and that longterm debt equals total debt. In practice, an analyst could refer to Alcatel’s footnotes to confi rmdetails, rather than making an assumption.1 . A . Calculate the company’s fi nancial leverage ratio for 2009.B . Interpret the fi nancial leverage ratio calculated in Part A.2 . A . What are the company’s debt-to-assets, debt-to-capital, and debt-to-equity ratiosfor the two years?B . Is there any discernable trend over the two years?
If Inland uses its $400 cash balance to pay off $400 of its long-term debt, what will be its new current ratio?(a) 1.68 (b) 2.03(c) 1.35 (d) 3.12
Choose the correct letter of answer and provide solution The following data applies to a firm: Interest charges=P50,000.00; Sales = P300,000.00; Tax Rate=P25%; Net Profit Margin=3%. What is the firm's time interest covered ratio? a. 0.24b. 0.54c. 1.04d. 1.24e. 1.44
Choose the correct letter and provide solution A firm has total annual sales (all credit) of P100,000.00 and accounts receivable of P20,000.00. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to P15,000.00? *a. 22.8 daysb. 34.8 daysc. 44.8 daysd. 52.8 dayse. 54.8 days
MULTIPLE CHOICE Milch Corporation sells on terms of net/90. Their accounts receivable are on average 20 days past due. If annual credit sales are P650,000, what is the company’s average investment in accounts receivable? *A. P168,611.11B. P178,611.11C. P188,611.11D. P244,444.00E. P198,611.11