The following table shows income statement and balance sheet data for five U.S. industries in 2017. INCOME STATEMENT AND BALANCE SHEET FOR 2017 SELECTED U.S. INDUSTRIES FOR 2017 (Figures in $ billions) Food Pharmaceuticals Oil and Coal Computers and Peripherals Food Stores Income Statement Data: Sales $ 666.9 $ 427.5 $ 802.0 $ 216.0 $ 474.2 Cost of goods sold 596.1 352.4 757.8 189.7 451.0 Balance Sheet Data: Inventory $ 67.8 $ 56.8 $ 44.2 $ 11.3 $ 27.9 Accounts receivable 56.6 68.1 52.8 23.7 7.4 Accounts payable 49.0 42.3 50.3 39.5 23.7 Note: Cost of goods sold includes selling, general, and administrative expenses. Source: U.S. Department of Commerce, Quarterly Financial Report for Manufacturing, Mining, Trade Corporations, and Selected Service Industries, Quarter 3, issued December 2017. Calculate the cash cycle for each industry.
The following table shows income statement and balance sheet data for five U.S. industries in 2017. INCOME STATEMENT AND BALANCE SHEET FOR 2017 SELECTED U.S. INDUSTRIES FOR 2017 (Figures in $ billions) Food Pharmaceuticals Oil and Coal Computers and Peripherals Food Stores Income Statement Data: Sales $ 666.9 $ 427.5 $ 802.0 $ 216.0 $ 474.2 Cost of goods sold 596.1 352.4 757.8 189.7 451.0 Balance Sheet Data: Inventory $ 67.8 $ 56.8 $ 44.2 $ 11.3 $ 27.9 Accounts receivable 56.6 68.1 52.8 23.7 7.4 Accounts payable 49.0 42.3 50.3 39.5 23.7 Note: Cost of goods sold includes selling, general, and administrative expenses. Source: U.S. Department of Commerce, Quarterly Financial Report for Manufacturing, Mining, Trade Corporations, and Selected Service Industries, Quarter 3, issued December 2017. Calculate the cash cycle for each industry.
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
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.8MCP
Related questions
Question
The following table shows income statement and balance sheet data for five U.S. industries in 2017.
INCOME STATEMENT AND BALANCE SHEET FOR 2017 SELECTED U.S. INDUSTRIES FOR 2017 (Figures in $ billions) |
|||||||||||||||||||
Food | Pharmaceuticals | Oil and Coal |
Computers and Peripherals |
Food Stores |
|||||||||||||||
Income Statement Data: | |||||||||||||||||||
Sales | $ | 666.9 | $ | 427.5 | $ | 802.0 | $ | 216.0 | $ | 474.2 | |||||||||
Cost of goods sold | 596.1 | 352.4 | 757.8 | 189.7 | 451.0 | ||||||||||||||
Balance Sheet Data: | |||||||||||||||||||
Inventory | $ | 67.8 | $ | 56.8 | $ | 44.2 | $ | 11.3 | $ | 27.9 | |||||||||
Accounts receivable | 56.6 | 68.1 | 52.8 | 23.7 | 7.4 | ||||||||||||||
Accounts payable | 49.0 | 42.3 | 50.3 | 39.5 | 23.7 | ||||||||||||||
Note: Cost of goods sold includes selling, general, and administrative expenses.
Source: U.S. Department of Commerce, Quarterly Financial Report for Manufacturing, Mining, Trade Corporations, and Selected Service Industries, Quarter 3, issued December 2017.
Calculate the cash cycle for each industry. (Negative amounts should be indicated by a minus sign. Use 365 days a year. Do not round intermediate calculations. Round your answers to 1 decimal place.)
Cash cycle (in days):
Food
Pharmaceuticals
Oil and Coal
Computers and Periphreals
Food Stores
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning