The average time the company took to pay off its suppliers. Introduction: The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

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Answer 1

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Chapter 3, Problem 10QP

Summary Introduction

To calculate: The average time the company took to pay off its suppliers.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Summary Introduction

To think critically about: The large value that this ratio implies.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

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2A. Colby's Manufacturing Company management found that during the last year it took an average of 43 days to pay its suppliers, whereas it took 45 days to collect its receivables. The company’s days’ sales in inventory were 58 days. What was Colby's cash conversion cycle? Colby's cash conversion cycle is________days.

CC2) La Reina de Oriente, S.A., a company that sells sausages, knows that it pays its suppliers 10 times a year. To determine the average collection period it is known that the annual sales of the company were $5'183,220.00, of which 70% are on credit and the average balance of customers is $382,982.37, that is to say it is necessary to calculate the turnover of accounts receivable; and the average age of inventory is based on the inventory turnover, whose data to calculate it as the previous one are: Average inventory 153,192.95 and its annual cost of sales amounts to $1'002,716.78. The company spends about $12.5 million in operating cycle investments. It plans to make modifications to its policies so that it can reduce its PPC by 5 days, and its EPI by one (before converting it to days). Negotiations with your supplier to extend payment terms have not been successful. With these data you have to calculate: 5) The operating cycle.6) The cash conversion cycle.7) Cash turnover.8) The…

Q4 Libscomb Technologies' annual sales are $6,743,847 and all sales are made on credit, it purchases $3,304,291 of materials each year (and this is its cost of goods sold). Libscomb also has $535,216 of inventory, $1,475,000 of accounts receivable, and $1,400,000 of accounts payable. Assume a 365 day year. What is Libscomb’s Receivables Period (in days)?

Answer 2

Question

Chapter 3, Problem 10QP

Summary Introduction

To calculate: The average time the company took to pay off its suppliers.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Summary Introduction

To think critically about: The large value that this ratio implies.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 3, Problem 10QP

Summary Introduction

To calculate: The average time the company took to pay off its suppliers.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Summary Introduction

To think critically about: The large value that this ratio implies.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 3, Problem 10QP

Summary Introduction

To calculate: The average time the company took to pay off its suppliers.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Summary Introduction

To think critically about: The large value that this ratio implies.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 3, Problem 10QP

Summary Introduction

To calculate: The average time the company took to pay off its suppliers.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Summary Introduction

To think critically about: The large value that this ratio implies.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Answer 6

Chapter 3, Problem 10QP

Summary Introduction

To calculate: The average time the company took to pay off its suppliers.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Answer 7

Chapter 3, Problem 10QP

Summary Introduction

To calculate: The average time the company took to pay off its suppliers.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Answer 8

Summary Introduction

To think critically about: The large value that this ratio implies.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Answer 9

Summary Introduction

To think critically about: The large value that this ratio implies.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 3.1 - Prob. 3.1ACQ Ch. 3.1 - Prob. 3.1BCQ Ch. 3.2 - Prob. 3.2ACQ Ch. 3.2 - Name two types of standardized statements and...Ch. 3.3 - What are the five groups of ratios? Give two or...Ch. 3.3 - Given the total debt ratio, what other two ratios...Ch. 3.3 - Turnover ratios all have one of two figures as the...Ch. 3.3 - Profitability ratios all have the same figure in...Ch. 3.4 - Return on assets, or ROA, can be expressed as the...Ch. 3.4 - Return on equity, or ROE, can be expressed as the...

The average time the company took to pay off its suppliers. Introduction: The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Solution Summary: The author calculates the average time taken by the company to pay off its suppliers or the days' sales in payables.

To calculate: The average time the company took to pay off its suppliers.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

To think critically about: The large value that this ratio implies.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Want to see the full answer?

Chapter 3 Solutions

The average time the company took to pay off its suppliers. Introduction: The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Solution Summary: The author calculates the average time taken by the company to pay off its suppliers or the days' sales in payables.

To calculate: The average time the company took to pay off its suppliers. Introduction: The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

To think critically about: The large value that this ratio implies. Introduction: The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

Want to see the full answer?

Chapter 3 Solutions

To calculate: The average time the company took to pay off its suppliers.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.

To think critically about: The large value that this ratio implies.

Introduction:

The average payable period is the days’ payable outstanding by the company. The average payables period mainly states the time taken by the firm to pay their invoices from the creditors like the suppliers.