Question 4 From BBT company's balance sheet and income statement in 2020, the following data are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 4 From BBT company's balance sheet and income statement in 2020, the following data are retrieved ($ million). Sales Cost of goods sold Inventories on January 1 Inventories on December 31 Accounts Receivable on January 1 Accounts Receivable on December 31 Accounts payable on January 1 Accounts payable on December 31 32.5 22.995 1.5 1.45 0.793 0.665 0.550 0.520 Required: a) Calculate the operating cycle of BBT company, on the basis of the given data. b) Calculate the cash conversion cycle of BBT company, on the basis of the given data. | c) Recently BBT company has extended its credit period unilateral with 30 days. What influence will this have on the operating cycle (OC) and cash conversion cycle (CCC)? d) Suppose BBT company starts a reverse factoring program for its suppliers. What will the effect be on the cash conversion cycle of BBT company and the cash conversion cycle of BBT company's suppliers? Question 4 From BBT company's balance sheet and income statement in 2020, the following data are retrieved ($ million). Sales Cost of goods sold Inventories on January 1 Inventories on December 31 Accounts Receivable on January 1 Accounts Receivable on December 31 Accounts payable on January 1 Accounts payable on December 31 32.5 22.995 1.5 1.45 0.793 0.665 0.550 0.520 Required: a) Calculate the operating cycle of BBT company, on the basis of the given data. b) Calculate the cash conversion cycle of BBT company, on the basis of the given data. | c) Recently BBT company has extended its credit period unilateral with 30 days. What influence will this have on the operating cycle (OC) and cash conversion cycle (CCC)? d) Suppose BBT company starts a reverse factoring program for its suppliers. What will the effect be on the cash conversion cycle of BBT company and the cash conversion cycle of BBT company's suppliers?
Expert Answer:
Answer rating: 100% (QA)
a Days of inventory in hand 365 x average inventory COGS 365 x 15 1452 22995 365 x 1475 22995 234127 ... View the full answer
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these general management questions
-
The 2012 comparative balance sheet and income statement of Appleton Group, Inc., follow. Appleton had no noncash investing and financing transactions during 2012. Requirement 1. Prepare the...
-
The 2012 comparative balance sheet and income statement of Attleboro Group, Inc. follow. Attleboro had no noncash investing and financing transactions during 2012. Requirement 1. Prepare the...
-
The Butler-Huron Companys balance sheet and income statement for last year are as follows: *Assume that all sales are credit sales and that average accounts receivable are the same as ending accounts...
-
Layes Corporation has been authorized to issue 20,000 shares of $100 par value, 7%, noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $5 stated...
-
Using the web, access The Coca-Cola Company's 2010 financial statements (www.thecoca-colacompany.com). Identify and discuss the following aspects of consolidated tax expense disclosed in the...
-
Water flows steadily from the pipe shown in Fig. P3.97 with negligible viscous effects. Determine the maximum flowrate if the water is not to flow from the open vertical tube at \(A\). Figure P3.97 3...
-
What are the reasons for significant changes in projects?
-
Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the...
-
Cullumber Company is considering a long-term investment project called ZIP. ZIP will require an investment of $104,000. It will have a useful life of 4 years and no salvage value. Annual revenues...
-
Cascade Company has four employees. All are paid on a monthly basis. The fiscal year of the business is June 1 to May 31. The accounts kept by Cascade include the following: .:. The following...
-
Jones Distributors purchases inventory in crates of merchandise. Assume the company began Februarywith an inventory of 40units that cost $315each. During the month, the company engaged in the...
-
Watch the following: Cayla Griffin vs Albanese Enterprise, Inc 08072020 PART 1 https://www.youtube.com/watch?v=nlEIlEv-RSQ&t=10s Cayla Griffin vs Albanese Enterprise, Inc 08102020 AM...
-
Please review this email that I received from a former colleague. Note that this is the exact email I received, so any typographical and grammatical errors were found in the original communication....
-
Discuss the impact of technology on the accounting profession. Discuss three ways technology improved identifying fraudulent acts. What do you foresee as a new technology necessary to decrease...
-
Read this article on Title IX and Due Process Links to an external site. Discuss any of the following questions: How have different Presidential administrations influenced the procedures for Title IX...
-
3. Journalize the following items (3 separate journal entries) regarding the establishment, changes and/or closing of a petty cash fund, as well as replenishing petty cash when necessary: a....
-
If Sam gives a speech where he teaches his audience how to deal with a parking ticket, he is most likely using what organizational framework? Problem-Solution O Spatial Chronological O Cause-Effect O...
-
Doorharmony Company makes doorbells. It has a weighted- average cost of capital of 5% and total assets of $ 5,900,000. Doorharmony has current liabilities of $ 750,000. Its operating income for the...
-
Access the 2011 financial statements for Cenovus Energy Inc. by going to investor relations section of the companys website. Answer the same questions as in Web Problem 1. For each question, indicate...
-
Access the 2011 consolidated financial statements for Rogers Communications Inc. by going to the investor's relations section of the company's website. Answer the questions below. Round percentages...
-
The retained earnings column in the statement of changes in equity shows dividends declared during the year. Do these dividends consist of the parent's, the subsidiary's, or both? Explain.
-
All public charities are nonprofits, but not all nonprofits are public charities. How do you explain that?
-
Nonprofit organizations are defined as private organizations that must use any profits for future operations. Is nonprofit organization a good name for this group of organizations? Can you think of...
-
How do you account for the varying perceptions of the human service subsector from colonial days to the present?
Study smarter with the SolutionInn App