Use the Gagnon 2016 income statement that follows and the balance sheet from SI3-6 to compute the following:a. Gagnon, Inc.'s, rate of inventory turnover and days' inventory outstanding for 2016. b. Days' sales in average receivables (days' sales outstanding) during 2016 (round dollar amounts to one decimal place). Assume all sales are made on account. c. Accounts payable turnover and

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Use the Gagnon 2016 income statement that follows and the balance sheet from SI3-6 to compute the following:
a. Gagnon, Inc.'s, rate of inventory turnover and days' inventory outstanding for 2016.
Use the Gagnon 2016 income statement that follows and the

b. Days' sales in average receivables (days' sales outstanding) during 2016 (round dollar amounts to one decimal place). Assume all sales are made on account.
c. Accounts payable turnover and days' payables outstanding for 2016. For this purpose, assume that the impact of inventories on cost of goods sold is immaterial, allowing you to use cost of goods sold rather than purchases in your computations.
d. Length of cash conversion cycle in days for 2016.
Do these measures look strong or weak? Give the reason for yoru answer.

Cash Conversion Cycle
Cash conversion cycle measures the total time a business takes to convert its cash on hand to produce, pay its suppliers, sell to its customers and collect cash from its customers. The process starts with purchasing of raw materials from suppliers,...
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Related Book For answer-question

Financial Accounting

11th edition

Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz

ISBN: 978-0134127620