The 2015 and 2016 balance sheets for Steele Electric showed Cash of $6,700 and $ 8,200 respectively, Accounts Receivable of $15,000 and $ 18,000, respectively, Inventory of $ 11,500 and $8,500, respectively, and Accounts Payable of $5,500 and $ 8,500, respectively. Its 2016 Income Statement showed Net Sales of $118,000, Cost of Goods Sold of $ 57,000, and Net Income of $33,000. The cash conversion cycle for 2016 was: (Assume all Sales are credit sales. Round any intermediary calculations to two decimal places and your final answer to the nearest day.) A. 64days. B. 70 days. C. 58 days. D. 32days
The 2015 and 2016 balance sheets for Steele Electric showed Cash of $6,700 and $ 8,200 respectively, Accounts Receivable of $15,000 and $ 18,000, respectively, Inventory of $ 11,500 and $8,500, respectively, and Accounts Payable of $5,500 and $ 8,500, respectively. Its 2016 Income Statement showed Net Sales of $118,000, Cost of Goods Sold of $ 57,000, and Net Income of $33,000. The cash conversion cycle for 2016 was: (Assume all Sales are credit sales. Round any intermediary calculations to two decimal places and your final answer to the nearest day.) A. 64days. B. 70 days. C. 58 days. D. 32days
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.9E
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Question
![The 2015 and 2016 balance sheets for Steele Electric showed Cash of $6,700
and $ 8,200 respectively, Accounts Receivable of $15,000 and $ 18,000,
respectively, Inventory of $ 11,500 and $8,500, respectively, and Accounts
Payable of $5,500 and $ 8,500, respectively. Its 2016 Income Statement
showed Net Sales of $118,000, Cost of Goods Sold of $ 57,000, and Net
Income of $33,000. The cash conversion cycle for 2016 was: (Assume all Sales
are credit sales. Round any intermediary calculations to two decimal places
and your final answer to the nearest day.)
A. 64days.
B. 70 days.
C. 58 days.
D. 32days](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe8b476a-cf45-4d58-b36b-09f6fda6968d%2F39a2f761-e0bc-4899-b4c5-85f57862a29d%2Fcxrhpze_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The 2015 and 2016 balance sheets for Steele Electric showed Cash of $6,700
and $ 8,200 respectively, Accounts Receivable of $15,000 and $ 18,000,
respectively, Inventory of $ 11,500 and $8,500, respectively, and Accounts
Payable of $5,500 and $ 8,500, respectively. Its 2016 Income Statement
showed Net Sales of $118,000, Cost of Goods Sold of $ 57,000, and Net
Income of $33,000. The cash conversion cycle for 2016 was: (Assume all Sales
are credit sales. Round any intermediary calculations to two decimal places
and your final answer to the nearest day.)
A. 64days.
B. 70 days.
C. 58 days.
D. 32days
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