In the month of June, Reliant sold 60 vehicles and had account receivable of $200,000.00. A vehicle

Fantastic news! We've Found the answer you've been seeking!

Question:

In the month of June, Reliant sold 60 vehicles and had account receivable of $200,000.00. A vehicle costs $50,000, accounts payable is $250,000 and the cost of sales is 75%, and the current value of total inventory is $500,000.00.

Calculate the following metrics for Reliant: -

The average daily sales

- Avg. days of accounts receivable

- The average daily cost of sales

- Avg. days of inventory

- Avg. days of accounts payable

- Cash to cash cycle time

- Ideally, should inventory days outstanding and cash-to-cash cycle time increase or decrease?

Related Book For answer-question

Financial Accounting

ISBN: 978-0133052152

2nd edition

Authors: Robert Kemp, Jeffrey Waybright

See More Books

Posted Date: Jan 06, 2021 10:44 PM

See More Questions

The following transactions occurred during the month of June 2011 for the Stridewell Corporation. The company owns and operates a retail shoe store. 1. Issued 100,000 shares of common stock in...
The following events occurred during the month of June at the Phipps Company, manufacturers of golf clubs. Prepare the appropriate journal entries. Phipps uses the gross price method and the...
A company purchased a mine of Rs. 50,000. Its scrap value is Rs. 5,000 and expected working life is 9 years. 1,00,000 units were expected to be produced during its working life. Units produced in...
Consider the following actual FY2019 data and a forecast of FY2020 selected balance sheet and income statement numbers. $ millions FY2019 Actual FY2020 Est. $29,009 $32,102 14,592 16,051 8,755 9,923...
Fernandez Company had an accounts receivable balance of $ 150,000 on December 31, Year 2 and $ 175,000 on December 31, Year 3. The company wrote off $ 40,000 of accounts receivable during Year 3....
Which of the following statements is true with regard to accounting? 1. Assets are resources under the entitys control that have future value. 2. Liabilities are obligations to suppliers, other...
What happens to the difference between the carrying amount of bonds and the principal amount of the bonds over time?
Horton Manufacturing Inc. produces blinds and other window treatments for residential homes and offices. The owner is concerned about the maintenance costs for the production machinery, as...
Duncan and Feyd start investing at the same time. Duncan makes payments of $40 at the end of each week into an investment that earns 5.25%, compounded weekly. Feyd makes a single investment into an...
Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $30,000 cash from the issue of common stock. 2. Borrowed $40,000...
Create a program that prompts for the scores of 10 quizzes (max 20 points each) and then 10 mini-projects (max 20 points each). You must use a loop when prompting for these. In the end, write out...
4. Calculate the expected concentration of the sodium hydroxide solution. The molar mass of NaOH is 39.997 g/mol. 5. Calculate and record the expected mass of benzoic acid required to react with...
Period Sales1. 120 2. 160 3. 200 4. 210 5. 240 6. 300 Find the forecasted sales in 3rd Quarten.
The following information was available from the inventory records of Swifty Company for January: Units Unit Cost Total Cost Balance at January 1 8800 $9.79 $86152 Purchases: January 6 6100 10.32...
Katsura Corporation incurred pre-operating costs: Investigatory expenses of $18,000 New employee training $25,000 Advertising $10,000 Land and building for use as a retail store when opened $150,000...
Direct Labor Variances Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct labor hours at an actual rate of $16.50 per hour. The Sewing Department used...
Suppose that the exchange rate for U.S. $1 for another currency is such that U.S. $1 = 3.5 ARS (Argentine pesos). Further suppose that if the exchange rate remains the same, you will receive a 25%...
Calculate the Lagrange polynomial P 2 (x) for the values (1.00) = 1.0000, (1.02) = 0.9888, (1.04) = 0.9784 of the gamma function [(24) in App. A3.1] and from it approximations of (1.01) and (1.03).
Natalies Nursing Home requested that you perform a vertical analysis of its balance sheet to determine the component percentages of its assets, liabilities, and stockholders equity. Round to the...
Use the Kahl Medical Supplies data from P11-39B. The cash amounts for Interest Revenue, Salaries Expense, Interest Expense, and Income Tax Expense are the same as the accrual amounts for these items....
The T-account for cash and the bank statement of Hampton Food Services for the month of October 2012 follows: Prepare Hampton Food Services bank reconciliation at October31. Cash 3185|Check #704 Oct...
Which of the following audit procedures is more likely to be performed with the use of audit sampling? a. Interview with management personnel. b. Completion of questionnaires. c. Confirmation of...
Which of the following is true of audit sampling? a. A sample is less time-consuming and provides less assurance than examining all items in the population. b. A sample is less time-consuming and...
Which of the following best illustrates an error caused by sampling? a. A randomly chosen sample may not be representative of the population as a whole on the characteristic of interest. b. An...

In the month of June, Reliant sold 60 vehicles and had account receivable of $200,000.00. A vehicle

Question:

Expert Answer:

Financial Accounting

Students also viewed these accounting questions