Kesuma Agih Bhd.'s total sales for the year ended 31 December 2007 was RM10.6 million. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Kesuma Agih Bhd.'s total sales for the year ended 31 December 2007 was RM10.6 million. The annual credit sales amounted to 70% of the total annual sales. The outstanding balances of accounts receivables for the year were 30% of the total annual credit sales. The inventory turnover period shows that the company took 62 days to convert the raw material into finished goods and to sell the goods to customers. The outstanding payables were RM1.3 million, with annual purchases of RM4 million. Required: (a) (b) State TWO ways in which the level of trade receivables of a business could be reduced. Calculate the following: (1) Receivables collection period. Payables payment period. (ii) (iii) Working capital cycle. Kesuma Agih Bhd.'s total sales for the year ended 31 December 2007 was RM10.6 million. The annual credit sales amounted to 70% of the total annual sales. The outstanding balances of accounts receivables for the year were 30% of the total annual credit sales. The inventory turnover period shows that the company took 62 days to convert the raw material into finished goods and to sell the goods to customers. The outstanding payables were RM1.3 million, with annual purchases of RM4 million. Required: (a) (b) State TWO ways in which the level of trade receivables of a business could be reduced. Calculate the following: (1) Receivables collection period. Payables payment period. (ii) (iii) Working capital cycle.
Expert Answer:
Answer rating: 100% (QA)
a Trade Receivables is the amount of business owned by the customers this amount is current assets of the company When sales are done in credit balanc... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 37,500 were in...
-
During a period Department A finished and transferred 54,000 units to Department B Of the 54,000 units. 10800 were onefifth complete with respect to direct labor at the beginning of the period and...
-
During March, the production department of a process operations system completed and transferred to finished goods 18,000 units that were in process at the beginning of March and 160,000 units that...
-
PWX Inc. has the following information for its years ended June 30: Required: Calculate the accounts receivable turnover and average collection period for 20X3 and 20X2. Comment on the trend. What...
-
Red-light cameras are used in many places to deter drivers from running red lights. The following graphical display appeared in the article Communities Put a Halt to Red-Light Cameras (USA Today,...
-
(a) A bipolar transistor is biased in the forward-active mode. The collector current is \(i_{C}=726 \mu \mathrm{A}\) and the emitter current is \(i_{E}=732 \mu \mathrm{A}\). Determine \(\beta,...
-
Connor Health Foods has 10,000 shares of \(\$ 1\) par common stock outstanding, which was issued at \(\$ 10\) per share. Connor also has retained earnings of \(\$ 80,000\). How much is Connor's total...
-
The capital investment committee of Touch of Eden Landscaping Company is considering two capital investments. The estimated income from operations and net cash flows from each investment are as...
-
For each of the following cost flow assumptions, calculate cost of goods sold, ending inventory, and gross profit. (1) LIFO. (2) FIFO. (3) Moving-average cost. (Round average-cost per unit to 3...
-
1 Leila Bannon, your supervisor and a fellow CPA, has been invited to participate in a symposium on ethics in the workplace. This event will bring together professionals from different fields who...
-
NYSE designated market makers: a. execute trades on behalf of their clients. b. are guaranteed a profit on every stock purchased and resold. c. act as dealers. d. provide a one-sided market. e. are...
-
As we discussed on the first day of class, on July 26, 2022, the Invesco Solar ETF (Ticker: TAN) closed at a price of $72.63/shr, and ran up to $85.57 in the ensuing 3 days. We attributed the lion's...
-
During the spin cycle the time dependent angular speed of a washing machine drum is given by the equation ( t ) = at + bt 2 - ct 4 where a = 2.8 rad/s 2 , b = 0.35 rad/s 3 and c = 0.035 rad/s 5 . At...
-
This is a theoretical case taken from VHA Intensive Ethics Advisory Committee Training, 1998, as presented by Arthur R. Derse MD, JD. An 87-year-old woman widowed for six years, who is otherwise...
-
Suppose an individual named Dale has an income of $100,000 and will take the standard deduction ($13,800) when paying taxes at the end of the year. During the current tax year (2023), Dale decided to...
-
Mr. Williams wants to accumulate a total of $477,000 in an RRSP that earns 13% compounded monthly. He is prepared to make 252 equal monthly contributions at the start of each month. What monthly...
-
1. How is restricted cash handle in the balance sheet? 2. What is segregation of duties? Give an example of functions that should be separated. 3.Why do food stands have a sign that says, "If you...
-
Could the owner of a business prepare a statement of financial position on 9 December or 23 June or today?
-
Determine which products are most likely to be manufactured as a job and which as a job lot. 1. A custom-designed home. 2. Hats imprinted with company logo. 3. Little League trophies. 4. A...
-
Use the following selected data from Business Solutions income statement for the three months ended March 31, 2012, and from its March 31, 2012, balance sheet to complete the requirements below:...
-
Each member of a team is to participate in estimating uncollectibles using the aging schedule and percents shown in Problem 9-4A. The division of labor is up to the team. Your goal is to accurately...
-
Find the fundamental frequency of the torsional system shown in Fig. 6.11, using Dunkerley's formula for the following data: (a) \(J_{1}=J_{2}=J_{3}=J_{0} ; k_{t 1}=k_{t 2}=k_{t 3}=k_{t}\); and (b)...
-
Fill in the Blank. Any symmetric positive definite matrix \([A]\) can be decomposed as \([A]=[U]^{T}[U]\), where \([U]\) is ___________ triangular matrix.
-
What is the basic assumption made in deriving Dunkerley's formula?
Study smarter with the SolutionInn App