Problem 8 OPERATING AND CASH CONVERSION CYCLES. Consider the following selected financial data for the Cloud 9 Retailer: Ending Item Beginning $7,000 Inventory $5.000 2.400 Accounts receivable 1.600 Accounts payable 4,800 2.700 Net credit sales $50.000 Cost of goods sold 30.000 Requirement: Calculate the operating and cash conversion cycles.

Problem 8 OPERATING AND CASH CONVERSION CYCLES. Consider the following selected financial data for the Cloud 9 Retailer: Ending Item Beginning $7,000 Inventory $5.000 2.400 Accounts receivable 1.600 Accounts payable 4,800 2.700 Net credit sales $50.000 Cost of goods sold 30.000 Requirement: Calculate the operating and cash conversion cycles.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 59BE: ( Appendix 5A) Sales Discounts Ramsden Inc. provided consulting services with a gross price of...

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( Appendix 5A) Sales Discounts Ramsden Inc. provided consulting services with a gross price of $25,000 and terms of 2/10, n/30. Required: 1. Prepare the necessary journal entries to record the sale under the gross method. 2. Prepare the necessary journal entries to record collection of the receivable, assuming the customer pays within 10 days. 3. Prepare the necessary journal entries to record collection of the receivable, assuming the customer pays after 10 days.
Question 4 a) You have collected the following information for Fishy Berhad. Item Beginning Ending Inventory RM20,700 RM43,00 Account rceivable RM9,900 RM11,500 Account payable RM16,500 RM22,700 Other information provided are credit sales RM210,000 and cost of goods sold RM198,000. Calculate: i) Operating cycle ii) Cash cycle
Activity 2. Cash Discount and Remittance Calculations For each of the following Paz Abad Company purchases, assume that credit terms 2/10, n/30 and that any credit memorandum was issued and known before Paz Abad made the payments. Purchases Shipping Terms Prepaid Freight Credit Memo (by seller) a. 12,000 FOB Shipping point 1,000 3,000 b. 24,000 FOB Destination 2,400 2,000 c. 28,000 FOB Shipping point 4,000 d. 40,000 FOB Shipping point 3,000 Required: 1. Determine the cash discount available. 2. Determine the cash remitted if the payment is made within the discount period. Let’s Analyze Activity 1. Transportation Costs On June 16, 2020, Vergara Co. sold merchandise to Pascual Co. for terms 2/10, n/30. Shipping costs were P600. Pascual Co. received the goods and Vergara Co.'s invoice on June 17. On June 24, Pascual Co. sent the payment to Vergara Co., which Vergara Co. received on June 25. Both Vergara Co. and Pascual Co. use the periodic inventory system. The following are several…
10. JASMINE Enterprises' purchases per purchase invoice is ₱150,000. The purchase discount is 2/10, n/30. Freight is ₱500, FOB Shipping point collect. The net purchases under the net method is? * PLEASE SHOW YOUR SOLUTIONS IN GOOD ACCOUNTING FORM. THANK YOU!
PROBLEM 10: The purchases journal of YYY Enterprises shows the following invoices: Invoice Invoice Date Number Amount Date FOB Term Received DECEMBER 2021 251 P20,000 23-Dec Destination 24-Dec 252 24,000 23-Dec Destination 29-Dec 253 16,000 26-Dec Shipping point 30-Dec 254 18,000 26-Dec Shipping point 5-Jan 255 27,000 2-Jan Destination 31-Dec 256 21,000 31-Dec Destination 4-Jan 257 2,000 27-Dec Shipping point 21-Dec 258 50,000 8-Jan Shipping point 2-Jan 259 12,000 22-Dec Destination 28-Dec 260 22,000 28-Dec Destination 27-Dec JANUARY 2022 261 P30,000 28-Dec Destination 4-Jan 262 24,000 29-Dec Destination 28-Dec 263 15,000 30-Dec Shipping point 31-Dec 264 6,500 2-Jan Shipping point 5-Jan 265 8,500 28-Dec Shipping point 4-Jan 266 19,000 30-Dec Destination 6-Jan How much of these invoices must be reported as part of inventory?
Exercise 22-19 Cash conversion cycle LO A4 ($ millions) Accounts payable, end of year $ 49,049 Accounts receivable, net, end of year 17,874 Inventory, end of year 4,855 Net sales 229,234 Cost of goods sold 141,048 Use the information above to compute the number of days in the cash conversion cycle for Apple. (Use 365 days in a year. Round calculations to the nearest whole day. Negative numbers should be indicated by a minus sign.)
QS 9-1 (Algo) Credit card sales LO C1 Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). Sold $21,000 of merchandise, which cost $15,800, on Mastercard credit cards. Mastercard charges a 5% fee. Sold $5,100 of merchandise, which cost $3,050, on an assortment of bank credit cards. These cards charge a 4% fee.
BUS 038 : Business Computations9. You purchase goods on an invoice dated July 5 with terms of 4/15, n/45 ROG. If you receive the goods on July 23, calculate (a) the last day of the discount period, and (b) the last day of the credit period. b. Last day of credit period:
BUS 038 : Business Computations10. You purchase goods on an invoice dated July 27 with terms of 3/10 EOM. Determine (a) the last day of the discount period, and (b) the last day of the credit period. 11. You purchase goods on an invoice dated February 5 of a leap year, with terms of 5/10-90X. Calculate the last day of the discount period. The discount period ends 100 days (10 + 90 = 100) after the date of the invoice. February 5 is day 36. 12. For terms of 6/10, n/30, what annual rate do you pay the supplier if you fail to pay the invoice at the end of the discount period?
8. GINKGO-NUTS Enterprises' purchases per purchase invoice is ₱150,000. The purchase discount is 2/10, n/30. Freight is ₱500, FOB Shipping point prepaid. At what amount is the accounts payable debited upon payment?
K .1 As a newly appointed Chief Supply Chain Officer at YS Medical Devices, you want to figure out the company's cash-to-cash conversion cycle and make decision(s) to improve the company's performance. Here are pieces of financial data you may utilize: Sales: $23.5 million Cost of goods sold: $20.8 million Operating weeks a year: 50 Total average on-hand inventory (average inventory value): $2,150,000 Accounts receivable: $2,455,000 Accounts payable: $3,695,000
Fast pls solve this question correctly in 5 min pls I will give u like for sure Savtk Hanse, Inc., has a cash cycle of 45 days, an operating cycle of 66 days, and an inventory period of 28.5 days. The company reported cost of goods sold in the amount of $345,000, and credit sales were $568,000. What is the company’s average balance in accounts payable and accounts receivable? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)