Question: The following data available for Mt Warnings Ltd. Account Beginning balance Ending Balance Use/source of cash Accounts payable 22,400 26,500 Inventory 68,600 65,300 Long term
The following data available for Mt Warnings Ltd.
Account
Beginning balance
Ending Balance
Use/source of cash
Accounts payable
22,400
26,500
Inventory
68,600
65,300
Long term debts
115,500
135,600
Common stock
250,400
235,900
Required:
a.Calculate and identify the source of cash or the use of cash for each account by filling into the column next to the ending balance (2 marks)
b.Assume the following
beginning balance of accounts receivable is $25,400
ending balance of accounts receivable of $23,800
total revenue (all sales are on credit) is $247,500
total cost of goods sold is $ 175,000
Calculate the operating cycle and cash cycle and interpret the outcomes(5 marks)
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