Skylark Industries has P6,000,000 in inventory and P3,000,000 in accounts receivable. The company has an average daily sales of P100,000. The company’s payables deferral period is 30 days. Compute for the cash conversion cycle.

Q: Direct Furnishings Inc. has the following data:Annual sales                      $10,000,000Cost of…

A: INFORMATION:  Annual sales               =         10,000,000Cost of goods sold    =…

Q: Sanders Prime Time Company has annual credit sales of $1,800,000 and accounts receivable of…

A: Average collection period (ACP) is the time taken to collect the cash from its accounts receivables.…

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: 22. The company has P5,000,000 n in inventory and P2,000,000 in accounts receivable. Its a daily…

A: Cash conversion cycle is the time period that the company takes to convert its inventory into cash.…

Q: Nock Inc. has a Days Inventory Outstanding of 13, an Accounts Receivable $128, an Average Sales per…

A: Cash Conversion Cycle is a method used by the management and it can be calculated as follows, =Days…

Q: Yeti Televisions has the following information: Inventory Outstanding = 15 Days Accounts Receivable…

A: Cash Conversion Cycle: = Inventory outstanding in days + outstanding sales in days - outstanding…

Q: If the average age of the inventory is 90 days, the average age of accounts payable is 60 days, and…

A: Cash Flow Cycle= Days inventory outstanding + Days sales outstanding - Days payables outstanding

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: Consider the following financial statement information for the Emma Corporation: Item Beginning $…

A: To calculate operating and cash cycle we need to identify  1.Average collection period  2.Day sales…

Q: Garrett Industries turns over its inventory six times each year; it has an average collection period…

A: Cash conversion cycle =Days of inventory outstanding (DIO) + Days sales outstanding (DSO) - Days…

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: Winther Company has a receivables turnover of 15 times. The average net receivables during the…

A: Winther company's Receivable turnover = 15 Average net receivables = P430000 Average net receivable…

Q: Inmoo Company's average age of accounts receivable is 36 days, the average age of accounts payable…

A: Cash conversion cycle depicts the time required to convert company’s investment in inventory into…

Q: What is the firm's cash (conversion) cycle?

A: Information provided: Inventory Conversion Period = 38 days Receivables Collection Period = 19 days…

Q: The following financial information relates to XYZ Company: Inventory turnover: 5 times Accounts…

A: Operating cycle measures the time taken by a company to convert its inventory into cash. Operating…

Q: Luke Company has an-inventory conversion period of 60 days, a receivables conversion period of 45…

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

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: 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: 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: Al Sharif Company's Average Accounts Receivables is OMR 360,000 and total Sales is OMR 1,200,000.…

A: Credit sale=Total sale×100-Cash sale %=OMR 1,200,000×100-40%=OMR 720,000

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

A: GIVEN  INVENTORY=P6000,000ACCOUNTS RECEIVABLES=P3000,000SALES=P100,000DPO=30 DAYS

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: TMRW Co. has annual credit sales of $1,080,000 and an average collection period of 32 days in 2010.…

A: 1.  TMRW Co.-   Average accounts receivable balance =  (Annual Credit Sales / 360 days) x Average…

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

A: The cash conversion cycle helps to measure the time taken by business to convert its inventory…

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: Zane Corporation has an inventory conversion period of 79 days, an average collection period of 43…

A: Calculate the cash conversion cycle as follows: Cash conversion cycle = Inventory  period +…

Q: Zen Inc., has an average age of accounts receivable is 36 days, the average age of accounts payable…

A: Cash conversion cycle will measure the required time to convert the investments made in inventories…

Q: Loak Corporation provides the following data for the year 2020: Cash sales 500,000; Collection from…

A: Gross sales are the revenues received by the company entity from the sale of its principal product…

Q: What is the cash conversion cycle for XYZ Company, based on the following information? Inventory:…

A: Cash conversion cycle refers to the time period a company takes in converting its inventory to cash.…

Q: cash conversion cycle

A: Cash conversion cycle = Age of inventory + Days sales outstanding - Accounts payable deferral period

Q: Collinsworth Co. reported sales on an accrual basis of$100,000. If accounts receivable increased…

A:

Q: The following information is an extract of the statement of profit or loss of Palladium Ltd for the…

A: Cash Sale=Rate×Annual Sales=20%×$625,000=$125,000 Credit Sale=Annual Sales-Cash…

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: 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: Compute for the cash conversion cycle.

A: Cash conversion cycle refers to the time period taken a business entity in order to convert its…

Q: Nice Ltd has a Days Inventory Outstanding of 13, Accounts Receivable $128, Average Sales per Day…

A: Cash conversion cycle is a measure which was used to find the required time to needed to convert the…

Q: Libscomb Technologies' annual sales are $5,851,355 and all sales are made on credit, it purchases…

A: Cash Cycle in days = Inventory Holding Period + Accounts receivable collection period - Accounts…

Q: Nicole Company has an average collection period of 52 days and accounts receivables of P250,000.…

A: The accounts receivables are the current assets of the company. The accounts receivables are…

Q: Top Sdn Bhd had cash of RM13,000 on hand together with trade debtors outstanding balance of RM55,000…

A: What is meant by Budgeting? It is the process of estimating the future revenues and outflows on the…

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

A: Cash conversion cycle can be calculated by using this equation Cash conversion cycle =Inventory…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.