The below table reports the $ amounts of inventory, receivables, payables, net sales and cost of good sols the XYZ Company in 200N. Accounts Beginning Ending Inventory $10,000 $12,000 Receivables 8,000 10,000 Accounts payable 6,000 7,000 Net sales 30,000 Cost of Goods sold 14,000 Calculate the inventory turnover and inventory period. Interpret. Calculate the receivable turnover and receivable period. Interpret. Calculate the operating cycle (OC). Interpret. Calculate and interpret the cash cycle (CC).
The below table reports the $ amounts of inventory, receivables, payables, net sales and cost of good sols the XYZ Company in 200N. Accounts Beginning Ending Inventory $10,000 $12,000 Receivables 8,000 10,000 Accounts payable 6,000 7,000 Net sales 30,000 Cost of Goods sold 14,000 Calculate the inventory turnover and inventory period. Interpret. Calculate the receivable turnover and receivable period. Interpret. Calculate the operating cycle (OC). Interpret. Calculate and interpret the cash cycle (CC).
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 9SPA: FINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8A. All sales...
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Exercise 1 (Short-Term Finance and Planning)
The below table reports the $ amounts of inventory, receivables, payables, net sales and cost of good sols the XYZ Company in 200N.
Accounts |
Beginning |
Ending |
Inventory |
$10,000 |
$12,000 |
Receivables |
8,000 |
10,000 |
Accounts payable |
6,000 |
7,000 |
Net sales |
30,000 |
|
Cost of Goods sold |
14,000 |
- Calculate the inventory turnover and inventory period. Interpret.
- Calculate the receivable turnover and receivable period. Interpret.
- Calculate the operating cycle (OC). Interpret.
- Calculate and interpret the cash cycle (CC).
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