Compute the operating cycle based on the following information: Inventory Period = 36 Accounts Receivable Period =
Question:
Compute the operating cycle based on the following information:
Inventory Period = 36
Accounts Receivable Period = 29
Accounts Payable Period = 25
Question 4
Month | Sales $ | Month | Sales $ |
Jan | 35,230 | July | 49,671 |
Feb | 25,211 | Aug | 27,787 |
Mar | 27,787 | Sep | 35,230 |
Apr | 49,671 | Oct | 27,787 |
May | 35,230 | Nov | 25,211 |
June | 25,211 | Dec | 49,671 |
The table contains the Sales estimates for the next year.
Sales are collected as follows:
In the month of Sales: 45%
In the next month: 27%
After 2 months: 12%
After 3 months: remainder is collected
What is the cash collection for November?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
Question 5
The terms of the sale were 2/3, net 41. What is the effective annual rate of interest?
Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
Question 6
The terms of the sale were 3/18, net 49. What is the effective annual rate of interest?
Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
Question 7
XYZ is a retailer and sells 107,000 units per year. It purchases from a single supplier. Fixed cost per order is $806 and carrying cost is $14 per unit.
Suppose XYZ orders 6,000 units per order from the supplier. What are the total costs (sum of carrying costs and shortage costs)?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill