Apple mart in Nizwa had faced a serious working capital issues during the last year due to the pandemic. In the year 2021 the business wants to improve its internal performance. Hence, it needs to estimate the amount of money to be invested further to keep up the required level of working capital. The finance department had provided with the following information to the management accounting team to work out the Average inventory processing period. The business has started its operations in the last year with an opening stock of OMR 10,000 and purchased OMR 40,000 worth goods from its supplier. Later, the business has rejected OMR 4,000 worth goods after the quality check conducted by the stores department. The total sales of the company for the year 2020 was OMR 80,000 out of which OMR 30,000 was on cash basis. The finance department has also provided with the following details; Amount in OMR Particulars Debtors at the beginning Debtors at the end Creditors at the beginning Creditors at the end 16,000 14,000 12,000 8,000 Stock at the end 16,000 Identify the Average inventory processing period from the following Options? O 140.17 days O 140.57 days O 158.17 days O 188.57 days Windows buii

Apple mart in Nizwa had faced a serious working capital issues during the last year due to the pandemic. In the year 2021 the business wants to improve its internal performance. Hence, it needs to estimate the amount of money to be invested further to keep up the required level of working capital. The finance department had provided with the following information to the management accounting team to work out the Average inventory processing period. The business has started its operations in the last year with an opening stock of OMR 10,000 and purchased OMR 40,000 worth goods from its supplier. Later, the business has rejected OMR 4,000 worth goods after the quality check conducted by the stores department. The total sales of the company for the year 2020 was OMR 80,000 out of which OMR 30,000 was on cash basis. The finance department has also provided with the following details; Amount in OMR Particulars Debtors at the beginning Debtors at the end Creditors at the beginning Creditors at the end 16,000 14,000 12,000 8,000 Stock at the end 16,000 Identify the Average inventory processing period from the following Options? O 140.17 days O 140.57 days O 158.17 days O 188.57 days Windows buii

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterE: Departmental Accounting

Section: Chapter Questions

Problem 3P

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Apple mart in Nizwa had faced a serious working capital issues during the last year due to the pandemic. In the year 2021 the business wants to improve its internal performance. Hence, it needs to estimate the amount of money to be invested further to keep up the required level of working capital. The finance department had provided with the following information to the management accounting team to work out the Average inventory processing period. The business has started its operations in the last year with an opening stock of OMR 10,000 and purchased OMR 40,000 worth goods from its supplier. Later, the business has rejected OMR 4,000 worth goods after the quality check conducted by the stores department. The total sales of the company for the year 2020 was OMR 80,000 out of which OMR 30,000 was on cash basis. The finance department has also provided with the following details; Identify the Average inventory processing period from the following Options?
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Horizon Corporation manufactures personal computers. The company began operations in 2013 and reportedprofits for the years 2013 through 2016. Due primarily to increased competition and price slashing in the industry,2017’s income statement reported a loss of $20 million. Just before the end of the 2018 fiscal year, a memo fromthe company’s chief financial officer to Jim Fielding, the company controller, included the following comments:If we don’t do something about the large amount of unsold computers already manufactured, our auditors willrequire us to write them off. The resulting loss for 2018 will cause a violation of our debt covenants and forcethe company into bankruptcy. I suggest that you ship half of our inventory to J.B. Sales, Inc., in Oklahoma City. Iknow the company’s president and he will accept the merchandise and acknowledge the shipment as a purchase.We can record the sale in 2018 which will boost profits to an acceptable level. Then J.B. Sales will simply returnthe…
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