Kindly answer all the questions and use 360 days in a year in all problems. Thank you. 1. The average weekly check collection is P300,000 while the average weekly check disbursement is P140,000. If the float of the collections and disbursements are 5 days and 4 days respectively, how much is the net float? Answer in absolute amounts.
Kindly answer all the questions and use 360 days in a year in all problems. Thank you. 1. The average weekly check collection is P300,000 while the average weekly check disbursement is P140,000. If the float of the collections and disbursements are 5 days and 4 days respectively, how much is the net float? Answer in absolute amounts.
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
Related questions
Question
Kindly answer all the questions and use 360 days in a year in all problems. Thank you.
1. The average weekly check collection is P300,000 while the average weekly check disbursement is P140,000. If the float of the collections and disbursements are 5 days and 4 days respectively, how much is the net float? Answer in absolute amounts.
2. Using the given, compute the cash conversion cycle of the entity.
Beginning | Ending | Average | |
Trade recievables | 300,000 | 350,000 | 325,000 |
Inventory | 200,000 | 800,000 | ??? |
Trade payables | 300,000 | ??? | 650,000 |
For the year | |||
Sales(all on credit) | 2,600,000 | ||
Purchases | 1,950,000 |
Interpret the given and the cash conversion cycle.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning