ATIQ, a small global jewellery and crafts marketing company, is beginning to expand into other markets in North America outside of “la Belle Province”.Its financial statements are as follows:Determine the net working capital. The firm's credit policy extends to 60 days, that of its supplier to 90 days. The average time taken to repay customers is 55 days. The time from order to sale is 100 days. What is its operating cycle? What is its cash cycle? Its financial statements are as follows:国ATIQ's year-end reviewPassif et avoirs desemenAssetsN+1actionnairesN+1Current liabilities/shortterm liabilitiesCurrent assets/shorter duterm assetsFournisseurs7 850 63 670Clients12 950 20 640rme ses cliel estStock of rawmaterials ander dufinished products10 000 16 650Total of Currentcaisseassets/short termdécaassetsénérUne tTotal ofCurrent liabilities/short termliabilitiesLiabilities and assets22 95037 29063 670Fix assetsof shareholdersNet fixed assets90090 000Long-term liabilitiesal deLong-term debt10 000 13 620er duShareholder's equityOrdinary share capital/Common share capital'êtresoire$et50 000 50 000Retained profits/Profits not distributed50 000Total shareholders'equityale à100 000 50 000rer duTotal liabilities andshareholders' equityTotal current assets117 850127 290117 850127 290

Working capital is the capital which is utilized to pay the day to day operational expenses of the…

ATIQ, a small global jewellery and crafts marketing company, is beginning to expand into other markets in North America outside of “la Belle Province”. Its financial statements are as follows: Determine the net working capital. The firm's credit policy extends to 60 days, that of its supplier to 90 days. The average time taken to repay customers is 55 days. The time from order to sale is 100 days. What is its operating cycle? What is its cash cycle?

ATIQ, a small global jewellery and crafts marketing company, is beginning to expand into other markets in North America outside of “la Belle Province”. Its financial statements are as follows: Determine the net working capital. The firm's credit policy extends to 60 days, that of its supplier to 90 days. The average time taken to repay customers is 55 days. The time from order to sale is 100 days. What is its operating cycle? What is its cash cycle?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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