Use the following information to calculate the cash conversion cycle of Bosonic Ltd at the end...

 

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Use the following information to calculate the cash conversion cycle of Bosonic Ltd at the end of its first year of operations. (Use 360 days in your calculations.) INFORMATION Bosonic Ltd commenced business on 02 January 2022 and at the end of the first year of operations it had sales of R1 656 000, cost of sales of R1 188 000 and an inventory turnover of 36 times. R180 000 was owed to Bosonic Ltd for credit sales and R50 400 was owed for credit purchases on 31 December 2022. All the sales were on credit and the credit purchases amounted to R594 000. 4.2 REQUIRED Use the information provided below to calculate the following as at 28 February 2023: 4.2.1 Non-current assets 4.2.2 Current liabilities 4.2.3 Current assets 4.2.4 Equity Amount owed to trade creditors Amount owed by trade debtors Income received for the next financial year Trading inventory (Stock) Provision for bad debts Expenses paid for the next financial year Cash float Bank (CR) Fixed deposit: ZAP Bank (matures on 31 May 2024) Capital (01 March 2022) Drawings (7 marks) INFORMATION The following is an extract from the accounting records of Malvern Traders on 28 February 2023 after necessary year-end adjustments were made: Long-term loan: ZAP Bank Property, plant and equipment (2 marks) (3 marks) (4 marks) (4 marks) ■ R 320 000 84 000 56 000 288 000 4 000 20 000 12 000 60 000 200 000 2 000 000 960 000 400 000 2 356 000 Additional information that must be considered: According to the Statement of Comprehensive Income the net profit for the year ended 28 February 2023 amounted to R1 080 000. Use the following information to calculate the cash conversion cycle of Bosonic Ltd at the end of its first year of operations. (Use 360 days in your calculations.) INFORMATION Bosonic Ltd commenced business on 02 January 2022 and at the end of the first year of operations it had sales of R1 656 000, cost of sales of R1 188 000 and an inventory turnover of 36 times. R180 000 was owed to Bosonic Ltd for credit sales and R50 400 was owed for credit purchases on 31 December 2022. All the sales were on credit and the credit purchases amounted to R594 000. 4.2 REQUIRED Use the information provided below to calculate the following as at 28 February 2023: 4.2.1 Non-current assets 4.2.2 Current liabilities 4.2.3 Current assets 4.2.4 Equity Amount owed to trade creditors Amount owed by trade debtors Income received for the next financial year Trading inventory (Stock) Provision for bad debts Expenses paid for the next financial year Cash float Bank (CR) Fixed deposit: ZAP Bank (matures on 31 May 2024) Capital (01 March 2022) Drawings (7 marks) INFORMATION The following is an extract from the accounting records of Malvern Traders on 28 February 2023 after necessary year-end adjustments were made: Long-term loan: ZAP Bank Property, plant and equipment (2 marks) (3 marks) (4 marks) (4 marks) ■ R 320 000 84 000 56 000 288 000 4 000 20 000 12 000 60 000 200 000 2 000 000 960 000 400 000 2 356 000 Additional information that must be considered: According to the Statement of Comprehensive Income the net profit for the year ended 28 February 2023 amounted to R1 080 000.

Answer rating: 100% (QA)

1 Days Sales Outstanding DSO Accounts Receivable R180000 amount owed to Bosonic Ltd for credit sales Annual Sales R1656000 sales for the year DSO Acco... View the full answer