Sharam Industries has a 120-day operating cycle. If its average age of inventory is 50 days, how
Question:
Transcribed Image Text:
Time = 62.3 days Operating Cycle (OC) Purchase Raw Materials on Account Collect Accounts Sell Finished Goods Average Age of on Account Inventory lÄAl) Average Collection Period (ACP 44.8 days Pay 17.5 days Accounts Cash Payable Inflow Cash Conversion Cycle (CCC Average Payment Period (APP 51.2 days 11.1 days Cash Outflow Time
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 27% (18 reviews)
ACP OC AAI ACP 120 days 50 days 70 days CCC OC APP CCC 120 days 30 days 90 days Ti...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Question Posted:
Related Video
Days payable outstanding is an efficiency ratio that measures the average number of days a company takes to pay its suppliers. The video shows how to effectively calculate days Payable outstanding.
Students also viewed these Finance questions
-
A company's cash conversion cycle increased from 55 days in year 1 to 68 days in year 3. What are the implications of this increase? What do you think happens to the cash conver sion cycles of...
-
What is the average collection cycle for Rian Company? Use the below information for solving the question 2008 Selected Income Statement Items for Rian Company Cash Sales ..... $ 298,000 Credit Sales...
-
What are the operating cycle and the cash conversion cycle , and how are they related to working capital policy?
-
Accounts Receivable AED 5,000 Accounts Payable 15,000 Advertising Expense 2,000 16,500 Building Cash Common Stock 50,000 Dividends 1,200 Equipment 2,000 Land 70,000 Notes Payable 60,000 3,400 Office...
-
Abbotsford Bikes Ltd. reports cash sales of $6,000 on October 1. (a) Record the sales assuming they occurred in Ontario and are subject to 13% HST (charged on selling price only). (b) Record the...
-
Show algebraically that a. \(\sum_{i=1}^{n}\left(x_{i}-\bar{x} ight)^{2}=\left(\sum_{i=1}^{n} x_{i}^{2} ight)-n \bar{x}^{2}\) b. \(\sum_{i=1}^{n}\left(x_{i}-\bar{x} ight)\left(y_{i}-\bar{y}...
-
How are databases useful for managers?
-
Vista Electronics, Inc. manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data. ¢ Sales...
-
10. On December 1, 2021, Shervin decided to track his finances. On this date, his assets and liabilities were as follows: Cash Prepaid Rent Prepaid Insurance House $15,000 4,000 300 65,000 Contents...
-
Prepare a Depembier 31 tral balance for Jindal Company using the following information and fill in the missing amount for Equiment (assume all data are correct Cesh Accunti jeyekle Servlees evenue...
-
What two characteristics make a security marketable? Why are the yields on nongovernment marketable securities generally higher than the yields on government issues with similar maturities?
-
Icy Treats, Inc., is a seasonal business that sells frozen desserts. At the peak of its summer selling season the firm has $35,000 in cash, $125,000 in inventory, $70,000 in accounts receivable, and...
-
What role does an investment banker play in a public offering? Describe an underwriting syndicate.
-
A snow-cone machine at an icecream shop costs \(\$ 15,000\). The machine is expected to generate profits of \(\$ 2,500\) each year of its 10-year useful life. At the end of the 10 years, the machine...
-
A small truck is purchased for \($17,000.\) It is expected to be of use to the company for 6 years, after which it will be sold for \($3,500.\) Determine the depreciation deduction and the resulting...
-
1. To develop an understanding of your ethical leadership style 2. To understand how your preferred ethical leadership style relates to other ethical leadership styles Directions 1. Please read the...
-
Consider the following Keynesian closed economy: Consumption \(\quad C=388+0.4(Y-T)-600 r\). Investment \(I=352-400 r\). Government purchases \(G=280\). Taxes \(\quad T=300\). Full-employment output...
-
What is the approximate magnitude of the electric field between the charge center and the ground? A. \(4 \times 10^{4} \mathrm{~V} / \mathrm{m}\) B. \(4 \times 10^{5} \mathrm{~V} / \mathrm{m}\) C....
-
With the economy in a steep nosedive in 2009, the U.S. government took many stabilization measures, some of which were highly controversial. The decision to use taxpayers funds to bail out General...
-
Using Gauss-Jordan elimination, invert this matrix ONLY 0 0 0 0 1
-
When trading U.S. Treasury securities, Treasury dealers: a. Buy at the bid price and sell at the ask price. b. Sell at the bid price and buy at the ask price. c. Buy at the stop-out bid price and...
-
Janet Boyle intends to deposit $300 per year in a credit union for the next 10 years, and the credit union pays an annual interest rate of 8%. a. Determine the future value that Janet will have at...
-
Janet Boyle intends to deposit $300 per year in a credit union for the next 10 years, and the credit union pays an annual interest rate of 8%. a. Determine the future value that Janet will have at...
-
Janet Boyle intends to deposit $300 per year in a credit union for the next 10 years, and the credit union pays an annual interest rate of 8%. a. Determine the future value that Janet will have at...
-
You are a team of HSIM directors for Peace Pirate Hospital and Dr. Collins, the emergency department (ED) chair, has asked for a documentation audit of ED records. As the HSIM directors, you conduct...
-
The applied behavioural science of employee interactions and organizational processes within a business or work environment. Discuss?
-
Prepare a short report for David on the financial analysis completed. Your report should include: The results of your analysis Your recommendation based on the required rate of return, if the...
Study smarter with the SolutionInn App