Company’s average age of accounts receivable is 40 days, while the average age of accounts payable is 45 Its inventory turnover is 5.3 times. Assuming a 365-day year, what is the length of its cash conversion cycle?

Q: Zane Corporation has an inventory conversion period of 48 days, an average collection period of 33…

A: It is given thatInventory conversion period is 48 days.Average collection period is 33 days.Payables…

Q: Ives Corp. has an Inventory period of 21.6 days, an accounts payable period of 34.1 days, and an…

A: Given: Inventory period = 21.6 days Accounts payable period = 34.1 Accounts receivable days = 30.2…

Q: hat is the average number of days that the receivables of Viper Construction remain outstanding…

A: For computing the inventory tune over ratio first we have to find out the sales amount by applying…

Q: Shulman Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash…

A: Assume 365 Days in Year Annual sales = $45,000 Annual cost of goods sold =   $30,000 Inventory =…

Q: If a firm has sales of $25,689,00 a year, and the average collection period for the industry is 45…

A: We often convert the receivables turnover ratio into days and call it the average collection…

Q: For Nibong Prawn Paste Enterprise (NPPE), the average age of accounts receivable (AAR) is 60 days,…

A: a. Cash conversion cycle = Inventory days + Account receivable days  - Account payable days Cash…

Q: If Emperium Inc. had credit sales of 2,027,773 per year and its days sales outstanding was equal to…

A: Days Sales or Receivables Outstanding means the number of days it takes a company to realize cash…

Q: Assume a firm has a cash cycle of 73 days and an operating cycle of 127 days. What is its payables…

A: Cash Cycle = 73 days Operating cycle = 127 days Payables turnover =?

Q: ABCD Corporation has credit sales of $10,290,000 and receivables of $1,560,000. Assume there are 365…

A: In this we have to calculate the receivable turnover ratio using the formula.

Q: At​ year-end, StickStick has cash of $ 22 comma 000$22,000​, current accounts receivable of $ 80…

A: Calculate the receivables turnover ratio.

Q: Abaca Company's accounts receivable is P240,000 at the beginning of the year and 280,000 at the end…

A: 1. 6× means 6 times. Accounts Receivables turnover ratio is 6               times.  2. Total Sales…

Q: What is the inventory period for a firm with an annual cost of goods sold of P5 million, P1.2…

A: The inventory turnover ratio is a financial ratio that defines the number of times within which…

Q: ABC Corporation has average balances of P1,800,000 in inventory, P2,000,000 in accounts receivable,…

A: Cost of goods sold = Opening stock + Net purchases + Direct expenses - Closing stock…

Q: At year-end, Sample has cash of $8,000, current accounts receivable of $40,000, merchandise…

A: Average accounts receivables = (beginning balance+ending balance)/2 Average accounts receivables =…

Q: The Dire Corporation has an inventory conversion period of 75 days, a receivables collection period…

A: Formula: cash conversion cycle = inventory conversion period + receivables collection period -…

Q: Assuming a 365-day year, how long (in average days) does the collectibles from customers stay as…

A: Assuming a 365-day year, how long (in average days) does the collectibles from customers stay as…

Q: A company has annual sales of $730 million. If its DSO is 35, what isits average accounts…

A: Calculation of average receivables: Answer: Average account receivables are $70 million.

Q: A firm has sales of $1.6 million, and 25 percent of the sales are for cash. The year-end accounts…

A: Average collection period is the time taken by the company to collect the funds from its…

Q: accounts receivable balance

A: SOLUTION:- Receivables Period      = 46             Credit sales = $5,840,000…

Q: If Hot Corporation has a balance in account receivable of P80,000, total assets of P520,000, credit…

A: Here, Accounts Receivables is P80,000 Total Assets is P520,000 Credit Sales is P360,000 Current…

Q: Zane Corporation has an inventory conversion period of 48 days, an average collection period of 26…

A: Cash conversion cycle(CCC) will be CCC =Inventory conversion period + Average collection period…

Q: BMC Co. has an average A/R balance of P1,250,000, average inventory balance of P1,750,000, and…

A: Cash conversion cycle helps in measuring how long a company will be deprived of cash if in order to…

Q: Baxley Brothers has a DSO of 20 days, and its annual sales are $10,585,000. What is its accounts…

A: The formula for daily sales outstanding can be used here to calculate the accounts receivable.The…

Q: A. Assume that all sales are on account. If sales revenue was $18,000,000 and the average days in…

A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…

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

A: operating cycle is sum of inventory period and average collection period.This is time required to…

Q: Average age of accounts receivable is 36 days, the average age of accounts payable is 40 days, and…

A: Cash conversion cycle measure the required level of time to convert the investments made in…

Q: ABC's sales for this year were $32,250,000 and the Accounts Receivable Turnover Ratio was 15.5. Next…

A: Given, ABC's sales for this year were $32,250,000  &  Accounts Receivable Turnover Ratio was…

Q: Mark's Manufacturing's average age of accounts receivable is 45 days, the average age of accounts…

A: The answer states the computation of cash conversion cycle

Q: Baxley Brothers has a DSO of 23 days, and its annual salesare $3,650,000. What is its accounts…

A: Day sales outstanding=23 daysAnnual sales=$3,650,000Days per year=365 days

Q: Calculate the firm’s cash conversion cycle, its daily cash operating expenditure, and the amount of…

A: Inventory Turnover ratio shows how many times a company has sold and replaced inventory during a…

Q: Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 38…

A: Cash conversion cycle is defined as the metric, which used to be expressed in time that are measured…

Q: Sixty percent of Jesse's annual sales of P900,000 is on credit. If its year-end receivables turnover…

A: Annual Sales = 900,000 Credit Sales = 60% * Annual Sales = 60% * 900,000 = 540,000 Receivable…

Q: A company has annual sales of $5,210,000 and its average daily accounts receivable is $377,000. What…

A: given that, annual sales = $5210000 average daily accounts receivables = $377000 365 days per year…

Q: Baxley Brothers has a DSO of 27 days, and its annual sales are $10,220,000. What is its accounts…

A: Ratio measurement is in terms of Financial world, depicts that a single accounting figure by itself…

Q: Average daily sales of Chase Pumping Goods are Rs. 100,000. Average accounts receivable of Chase has…

A: Cash conversion cycle is the time period that is used by the company to convert its resources into…

Q: The Zocco Corporation has an inventory conversion period of 60 days, an average of collection period…

A: Cash conversion cycle means amount of time taken to convert raw materials or inventory of the…

Q: Assume that ABC Corporation pays for each purchase three (3) weeks after date of purchase. Maintains…

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

Q: ABCD Corporation has credit sales of $10,960,000 and receivables of $1,260,000. Assume there are 365…

A:

Q: 1. Raviolli Enterprise has an average age of accounts receivable is 45 days. The average age of…

A: Formula:                Cash Conversion Cycle (CCC)= DRO+DIO- DPO where, DRO days of Receivables…

Q: Zane Corporation has an inventory conversion period of 90 days, an average collection period of 34…

A: a. Cash conversion cycle = Inventory turnover day + Receivables day – Payables day

Q: If an average age of accounts payable is 15 days, the average age of accounts receivables is 60…

A: Cash Conversion Cycle = Days Inventory outstanding + Days receivables outstanding - Days payables…

Q: National Co. has an inventory conversion period of 65 days, a receivables conversion period of 42…

A: Cash conversion cycle = Inventory conversion period + Receivables conversion period - Payment cycle…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.