12.2 - The Operating Cycle

1) Libscomb Technologies' annual sales are $6,010,417 and all sales are made on credit, it purchases $4,061,906 of materials each year (and this is its cost of goods sold). Libscomb also has $535,434 of inventory, $572,597 of accounts receivable, and $493,132 of accounts payable. Assume a 365 day year. What is Libscombs Inventory Turnover? 2) Libscomb Technologies' annual sales are $6,355,125 and all sales are made on credit, it purchases $3,562,771 of materials each year (and this is its cost of goods sold). Libscomb also has $538,871 of inventory, $525,627 of accounts receivable, and $411,905 of accounts payable. Assume a 365 day year. What is Libscombs Inventory Period (in days)?

3) Libscomb Technologies' annual sales are $5,141,530 and all sales are made on credit, it purchases $3,306,724 of materials each year (and this is its cost of goods sold). Libscomb also has $507,761 of inventory, $551,613 of accounts receivable, and $492,137 of accounts payable. Assume a 365 day year. What is Libscombs Receivables Turnover?

4) Libscomb Technologies' annual sales are $5,332,470 and all sales are made on credit, it purchases $3,418,185 of materials each year (and this is its cost of goods sold). Libscomb also has $534,100 of inventory, $1,475,000 of accounts receivable, and $1,400,000 of accounts payable. Assume a 365 day year. What is Libscombs Receivables Period (in days)?

5) Libscomb Technologies' annual sales are $6,879,896 and all sales are made on credit, it purchases $3,179,857 of materials each year (and this is its cost of goods sold). Libscomb also has $565,311 of inventory, $545,421 of accounts receivable, and $422,365 of accounts payable. Assume a 365 day year. What is Libscombs Operating Cycle (in days)?