Samaritan Supplies, Inc. has P5 million in inventory and P2 million in accounts receivable. Its average daily sales are P100,000. The company has P1.5 million in accounts payable. Its average daily purchases are P50,000. What is the length of the company's inventory conversion period? A. 50 days B. 90 days C. 120 days D. 40 days Using the information in the last question, what is the length of the company's cash conversion period? A. 50 days B. 20 days C. 30 days D. 40 days

Q: For its most recent year a company had Sales (all on credit) of $750,000 and Cost of Goods Sold of…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: A company has sales of $1,200,000. COGS is $900,000. Average inventory is $200,000. What is the…

A: An evaluation method that provides information regarding the number of days inventory held in the…

Q: Skylark Industries has P6,000,000 in inventory and P3,000,000 in accounts receivable. The company…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Assuming that net purchases was P900,000 during the year and that ending merchandise inventory was…

A: Ending inventory = beginning inventory - decrease in inventory = P250000 - P20000 = P230,000

Q: Last year, Toby's Hats had net sales of $45,000,000 and cost of goods sold of $29,000,000. Toby's…

A: Introduction: Average accounts receivable: Sum of both Beginning and ending accounts receivables…

Q: Assume a firm's inventory level of $11,500 represents 33 days of sales.  What is the annual cost of…

A: Inventory days is the days which represents Average Inventory taken time to convert it into Sales.…

Q: Grab Co. has a normal operating cycle of 60 days. The average age of inventory is 30 days. The…

A: Normal Operating cycle = Age of inventory + Age of Debtors Also, 360/ age of debtors = debtors…

Q: 7. Charles Inc. has an ending inventory of $423,425, and the cost of goods sold for the year just…

A: Solution:- Inventory Turnover ratio computes the pace at which the inventory is being used.

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

A: Ratio Analysis The purpose of preparing ratio analysis to understand the strength and weakness of…

Q: The quick ratio is 1.7 while the current ratio is 2.5. The current liabilities amount to PHP5,000.…

A: Here, Quick Ratio is 1.7 Current Ratio is 2.5 Current Liabilities is PHP5,000 Cost of Good Sold is…

Q: JKL Company’s sales are $1,000,000 and the Cost of Sales is $400,000 The beginning and ending…

A: Formula: Inventory turnover ratio = ( Cost of sales / Average inventories ) x 100 Average inventory…

Q: The up towner has sales of $913,400 costs of goods sold of $579,300 inventory of $123,900 and…

A: days the firm takes to sell its inventory assuming that all sales are on credit = Inventory Days =…

Q: Carey's Department Store had net sales of $20 million and cost of goods sold of $17.00 million for…

A: The question is based on the concept of Accounting Ratios.

Q: A company has an average inventory on hand of P100,000 and the days in inventory are 73 days. What…

A: Days in inventory=Average inventoryCost of goods sold×365 days

Q: Industria del Norte has receivable accounts of $ 42,300, inventory of $ 61,200, sales of $ 544,200,…

A: The number of days to sell all inventory can be ascertained by using the days sales of inventory…

Q: The estimated inventory amount is: * The current assets of Bulldogs Inc. consists of cash, accounts…

A: Inventory Inventory refers to the assets of the company which are used for further production of…

Q: Mario’s Home System has sale of $2,820, costs of goods sold of $2,160, inventory of $504, and…

A: The term inventory refers to both raw materials used in manufacturing and completed goods that are…

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: National Co. has P5 million in inventory and P2 million in accounts receivable. Its average daily…

A: The inventory conversion period means, in how many days the inventory is converted into sales by the…

Q: Determine the Inventory Turnover Ratio (ITR) and Days Sales Outstanding (DSO

A: The Inventory Turnover Ratio is the cycle of sale and purchase of goods by a company over a…

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: Fulmer company has an inventory turnover ratio of 6. Their Annual CoGS are $750,000. If I were to…

A: Given the following information: Inventory turnover ratio: 6 Cost of goods sold: $750,000

Q: The following are ABM Store's year-end balances of selected accounts: Cash, P200,000.00; Sales,…

A: The financial statements are prepared to calculate the financial performance of the company.

Q: For its most recent year a company had Sales (all on credit) of $850,000 and Cost of Goods Soid of…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: The following are ABM Store's year-end balances of selected accounts: Cash, P200,000.00; Sales,…

A: Net Sales = Sales - Sales Discount Gross Profit = Net Sales - Cost of Goods sold Net Income = Gross…

Q: The records of BRACKISH SALTY Co. showed the following information: Accounts receivable, net, Jan.…

A: Gross income refers to the money that a corporation earns by subtracting the expenses involved with…

Q: The days' sales in inventory is 73. The cost of goods sold is 720,000. The net sales are Php…

A: Inventory means goods held by a business which ultimate goal is to resale them.

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Days sales inventory It is  an estimation of the typical number of days or time expected for a…

Q: If we know that for the year 2010 Johnson's Company had Cost of goods sold = 600,000 USD and Sales…

A: Given that,  Sales (on credit) = 850,000 USD Opening accounts recievables = 75,000 USD Closing…

Q: A retailer has annual sales of $500,000 and an average finished-goods inventory of$15,000. If the…

A: Introduction: Inventory turnover ratio is defined as the number of times a business would sell or…

Q: Hiligaynon Company provided the following information for the current year: Beginning inventory of…

A: Solution Cost of good sold is the cost which a business incur to sales a product.

Q: n the current year, Borden Corporation had sales of $2,000,000 and cost of goods sold of $1,200,000.…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed by…

Q: National Co. has P5 million in inventory and P2 million in accounts receivable. Its average daily…

A: Inventory conversion period = Inventory/Average daily cost of goods sold   Note :- In case cost of…

Q: Your company sells $469,300 of goods during the year that have a cost of $398.600. Inventory was…

A: Inventory turnover ratio is a form of efficiency ratio, which shows how many times inventory is…

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: . The records of Ree-ree Co. show the following information: Increase in accounts payable…

A: Cost of goods sold = Disbursements for purchases + Increase in accounts payable + Decrease in…

Q: Libscomb Technologies' annual sales are $5,153,262 and all sales are made on credit, it purchases…

A: Inventory Turnover calculates the number of times a company sells its inventory in a year.

Q: Himantayon Company provided the following information for the current year: Beginning inventory…

A: Gross purchase is the sum of the net purchase and purchase return. The net purchase can be…

Q: Consider the following financial statement information for the Hop Corporation: Item Beginning…

A: Accounts payables are those supplier accounts from whom business has made credit purchases but…

Q: The company made purchases of P60,000 and sales of P85,000 with P10,000 left in inventory. If the…

A: Cost of sales means how much cost of goods or products has been sold to the customers. Some…

Q: Blake distributors had a beginning inventory for June of 100,000. They purchased 25,000 in goods…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

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: 137.Blue Spruce Corp. had net credit sales of $13013000 and cost of goods sold of $9376000 for the…

A: The answer is as fallows

Q: What is the inventory turnover if an annual credit sales value of 365 million; accounts receivable…

A: Solution:- We know, Inventory Turnover Ratio means the ratio of cost of goods sold to the average…

Q: Tefft Industires has an average inventory of $170,000, sells on term of 2/10, net 30, and its cost…

A: Inventory conversion period is the number of days in which the inventory is stored before being sold

Q: Thornton Universal Sales' cost of goods sold (COGS) average $2,000,000 per month, and it keeps…

A: inventory conversion period can be calculated by dividing 365 by inventory turnover ratio.

Q: find the inventory turnover at cost.

A: Inventory turnover calculates the number of times inventory can be converted into sales by company.…