Rauch Co. has the following selected information from its most recent annual financial statements: Accounts receivable...
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Rauch Co. has the following selected information from its most recent annual financial statements: Accounts receivable Inventories Accounts payable Sales (all on credit) Cost of goods sold Operating expenses* 20X8 $ 223,400 121,700 177,400 779,800 350,910 77,400 a) $12,819 b) $17,433 c) $18,117 d) $22,221 20X7 $ 226,700 151,600 153,900 798,300 359,235 78,900 *Operating expenses include depreciation and amortization of $10,500 in 20X8 and $10,100 in 20X7. The company pays 8% annual interest on borrowings from its bank. What is the interest cost on the cash required to finance the company's estimated cash conversion cycle in 20X8? (For calculations, use 365 days in a year and round all calculations to the nearest day.) Rauch Co. has the following selected information from its most recent annual financial statements: Accounts receivable Inventories Accounts payable Sales (all on credit) Cost of goods sold Operating expenses* 20X8 $ 223,400 121,700 177,400 779,800 350,910 77,400 a) $12,819 b) $17,433 c) $18,117 d) $22,221 20X7 $ 226,700 151,600 153,900 798,300 359,235 78,900 *Operating expenses include depreciation and amortization of $10,500 in 20X8 and $10,100 in 20X7. The company pays 8% annual interest on borrowings from its bank. What is the interest cost on the cash required to finance the company's estimated cash conversion cycle in 20X8? (For calculations, use 365 days in a year and round all calculations to the nearest day.)
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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