Ameer Ltd. is a manufacturing company that produces toys for kids. The company was able to sustain areasonable amount of sales in the last two quarters despite the pandemic-crisis during the last year. However,the company has faced some serious liquidity problems due to delayed payments by the customers and lowersales in the first two quarters. Hence, the company is seriously thinking about revising its working capitalstandards by considering the changes in the market. The finance manager of the company is seeking your helpin assessing the Average inventory processing period from the following financial data.enThe company had an opening stock of OMR 10,000 during the last year and made a total purchase of 27,000OMR. The company has returned OMR 2000 worth material due to quality issues. During the last year, thebusiness has paid OMR 3000 as wages and OMR 6000 as salaries. The company sold goods for a total amountof OMR 50,000 of which OMR 20,000 sales was on cash basis. Average debtors during the last year was 10,000OMR, average creditors were 15,000 OMR and closing inventory was OMR 8,000.Choose Average Inventory conversion period of Ameer Ltd. from the following?120.12188.23109.50125.35o search

Name: Ameer Ltd. is a manufacturing company that produces toys for kids. Th
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Description: Ameer Ltd. is a manufacturing company that produces toys for kids. The company was able to sustain areasonable amount of sales in the last two quarters despite the pandemic-crisis during the last year. However,the company has faced some serious liqu

Inventory turnover ratio = Credit sales/((Opening inventory + Closing inventory)/2) Particulars…

Answered: Average Inventory conversion period

Business

Accounting

Average Inventory conversion period

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter21: Dynamic Capital Structures And Corporate Valuation

Section: Chapter Questions

Problem 5MC: David Lyons, CEO of Lyons Solar Technologies, is concerned about his firms level of debt financing....

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Ameer Ltd. is a manufacturing company that produces toys for kids. The company was able to sustain a reasonable amount of sales in the last two quarters despite the pandemic-crisis during the last year. However, the company has faced some serious liquidity problems due to delayed payments by the customers and lower sales in the first two quarters. Hence, the company is seriously thinking about revising its working capital standards by considering the changes in the market. The finance manager of the company is seeking your help in assessing the Average inventory processing period from the following financial data. The company had an opening stock of OMR 10,000 during the last year and made a total purchase of 27,000 OMR. The company has returned OMR 2000 worth material due to quality issues. During the last year, the business has paid OMR 3000 as wages and OMR 6000 as salaries. The company sold goods for a total amount of OMR 50,000 of which OMR 20,000 sales was on cash basis. Average…
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