a) Sharam Industries has a 120-day operating cycle. If its average age of inventory is 50 days, how long is its average collection period ? If its average payment period is 30 days, what is its cash conversion cycle ?

Q: Sharam Industries has a 120-day operating cycle. If its average age of inventory is 50 days, how…

A: We need to understand two cycles here. (1) Operating cycle (2) Cash conversion cycle Operating cycle…

Q: Carson Ltd. has prepared the following 2021 projections for its beverage company: Sales Month…

A: Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is…

Q: Worton Distributing expects its September sales to be 25% higher than its August sales of $154,000.…

A: August Sales = $154,000 September Sales = $154,000 + 25% = $192,500   Cash Collection in September…

Q: Star Ltd operates a retail business where Purchases are sold at cost plus 25%. The information…

A: Working notes :…

Q: Eddie's Bar and Restaurant Supplies expects its revenues and payments for the first part of the year…

A: Cash Budget is that Ledger / Account which is prepare on estimated figure basis for know the Cash…

Q: Garrett Industries turns over its inventory six times each year; it has an average collection period…

A: Cash conversion cycle =Days of inventory outstanding (DIO) + Days sales outstanding (DSO) - Days…

Q: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is…

A: In this case of Halifax shoes, it is given that there are  a certain fixed proportion of credit…

Q: Icy Treats, Inc., is a seasonal business that sells frozen desserts. At the peak of its summer…

A: Working Capital=Current Assets-Current Liabilities

Q: Wolverine, Inc. began operations on January 1 of the current year with a $12,000 cash balance. Forty…

A: The cash budget shows the position of cash inflow and outflow during a period of time. Budgets are…

Q: A company has the following collection pattern: month of sale 40%; month following sale, 60%. If…

A: Note : Sales of Feb Corrected : $200000 Statement of Computation of Cash Collection In February…

Q: The Milton Company currently purchases an average of $25,000 per day in raw materials on credit…

A: 1. Calculate the current level of trade credit:

Q: Magenta Corporation has the following sales forecasts for the selected three-month period for the…

A: Cash Budget: Cash Budget is a schedule to record cash inflows and outflows over a period with a view…

Q: Morning Glory buys cereal directly from the manufacturer for $20 per case. The company’s annual…

A: Economic order quantity: It can be defined as an optimal quantity that is purchased by the company…

Q: Wildhorse's Bakery distributes its products to more than 75 restaurants and delis. The company's…

A: Operating cycle = Invetory perod + average collection period

Q: Earthie’s Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70%…

A: Formula: Credit sale amount = Total sales x credit sale % Multiplying total sales with credit sale…

Q: Dolittle and Dalley has $4,000 in purchases for January and $6,000 in purchases for February. It…

A: Total Cash payments for inventory  in February  = (Purchases for February ×70%) + (Purchases of…

Q: Calculate Icy Treat’s minimum and peak funding requirements

A: Minimum = cash + inventory +account receivable- account payable  10000+40000+60000-25000 = 85000

Q: Scouts Corp. projects its sales to be 1,000 units this year. As a result of holding inventories,…

A: Part 1:-Reorder Point It is the level of inventory at which we need to replenish the inventory…

Q: mith Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory carrying…

A: Inventory carrying cost is the cost of keeping items in stock. The larger the volume of inventory,…

Q: Wheels & Deals Limited uses 60,000 batteries each year in its production of motorcycles at a cost of…

A: Question of Wheels & Deals Limited is talking about the cost of inventory as per the current…

Q: Angelini’s has been in business since January of the current year. The company buys fresh pasta and…

A: The question is related to Budgeted Income Statement,  Cash Budget for the month of May. The details…

Q: The Palos Company expects sales for June, July, and August of $48,000, $54,000, and $44,000,…

A: Credit sales: Sales are made to customer but payment will be delayed to a future date. Formulas:

Q: Cash Collections for Belcher Motors found that 35% of its sales were cash and the remaining 65% are…

A: The cash collection during the quarter depends on the percentage of cash sales and credit sales and…

Q: ulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory…

A: The total variable cost of production refers to the production cost that changes with the change in…

Q: Halifax Shoes has 39% of its sales in cash and the remainder on credit. Of the credit sales, 65% is…

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: ConstructAB'S cash budget for the next three months.

A: Cash budget is the budget which is made by the company to determine the cash inflows and outflows of…

Q: Sapphire Aerospace operates 52 weeks per year, and its costof goods sold last year was $6,500,000.…

A:

Q: Green Tees, an on line retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer.…

A: Ordering Cost is a type of expenditure used in computation of Economic Order Quantity (EOQ). It…

Q: Eddie's Bar and Restaurant Supplies expects its revenues and payments for the first part of the year…

A: The cash budget is an estimation of the cash receipts and cash payments for each month or a period…

Q: Crawford Steel Corp. buys inventory of 40,000 units annually. The purchase price per unit is $3.00…

A: Inventory Management: Inventory management tools like the economic order quantity, the reorder level…

Q: ClipClop record in connection with the April sale? $7,680 $20,000 $0 because ClipClop does not know…

A: As per relevant standard if the entity believes that it is probable that a discount will be provided…

Q: A firm collects 25% of its credit sale in the month of sale and the remainder in the following…

A: The external finance is the amount that is needed by the company to continue their operation and or…

Q: cash conversion cycle

A: Cash conversion cycle = Age of inventory + Days sales outstanding - Accounts payable deferral period

Q: Sioux Corporation is estimating the following sales for the first four months of next year:…

A:

Q: At the beginning of the​ year, Boatwise Corporation has 610 life vests in inventory. The company…

A: Production means the number of units produced during the specified period. It is not always…

Q: Berry Manufacturing turns over its inventory 8 times each year, has an Average Payment Period of 35…

A: To Find: Firm's Operating cycle Cash conversion cycle Daily Cash operating expenditure

Q: Gerry Jacobs, a financial analyst for Best Value Supermarkets, has prepared the following sales and…

A: Budgeting is a process of estimating the outcomes of the upcoming period. Cash budget is a part of…

Q: tar Company was organized on August 1 of the current year. Projected sales for the next three months…

A: Cash account means where cash receipts is added to the opening cash balance and all cash payment…

Q: Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost…

A: Solution:- Carrying cost of inventory means the holding cost of inventory paid in order to store and…

Q: Angelini's has been in business since January of the current year. The company buys fresh pasta and…

A:

Q: JENNY Processing Company is engaged in the manufacture of rattan furniture primarily designed for…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Millen’s managers have made the following additional assumptions and estimates: Estimated sales for…

A: The operating cycle refers to the whole process cycle, begins with purchasing and ends with a…

Q: Earthie's Shoes has 55% of its sales in cash and the remaining 45% are credit sales. Of the credit…

A: Collection in June will be: Cash sales of June. 70% of credit sales of June. 15% of credit sales of…

Q: Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand…

A: Economic order quantity (EOQ) is a computation that businesses use to determine their ideal order…

Q: Home Company will open a new store on January 1. Based on experience from its other retail outlets,…

A: For the Given Case: Accounts Receivable Balance at the end of Particular Month = Total Credit Sales…

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.