Cash Conversion Cycle Exercise (By Pair)Company XYZ Financial Data (for a specific period).• Net Sales (Credit Sales): $200,0000000●●Cost of Goods Sold (COGS): $120,000Accounts Receivable (AR) at the beginning of the period: $30,000Accounts Receivable (AR) at the end of the period: $40,000Inventory at the beginning of the period: $50,000Inventory at the end of the period: $60,000Accounts Payable (AP) at the beginning of the period: $20,000Accounts Payable (AP) at the end of the period: $25,000Compute for the Cash Conversion Cycle

Cash conversion cycle is one of the efficiency measure being used in business. This is sum of days…

Answered: Cash Conversion Cycle Exercise (By…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 8EP

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Question Content Area Cash and accounts receivable for Adams Company are as follows: Line Item Description Current Year Prior Year Cash $41,180 $35,500 Accounts receivable (net) 29,394 41,400 What is the amount and percentage of increase or decrease that would be shown with horizontal analysis? Enter a decrease using a minus sign before the amount and the percentage. Account Dollar Change Percent Change Effect Cash Accounts Receivable
Claculate Delta Airlines' Cash COnversion Cycle based on the following information: Sales 289,729 COGS 196,476 Accounts Receivable 35,419 Inventory 4,248 Accounts Payable 56,227
Whaley & Whaley has the following data. What is the firm's cash conversion cycle? Inventory conversion period = Average collection period = Payables deferral period = O a. 37 days O b. 31 days O c. 41 days Od: 45 days O e. 34 days 41 days 31 days 38 days
Using the given, compute the cash conversion cycle of the entity. Use 360 days in a year Beginning Ending Average Trade recievables 300,000 350,000 325,000 Inventory 200,000 800,000 ??? Trade payables 300,000 ??? 650,000 For the year Sales(all on credit) 2,600,000 Purchases 1,950,000 Interpret the given and the cash conversion cycle.
Question Content Area Cash and accounts receivable for Adams Company are as follows: Current Year Prior Year Cash $63,104 $54,400 Accounts receivable (net) 34,736 66,800 What are the amounts and percentages of increase or decrease that would be shown with horizontal analysis? Account Dollar Change Percent Change Cash $fill in the blank 1 fill in the blank 2 % Accounts Receivable $fill in the blank 4 fill in the blank 5 %
An analyst gathers the following data for a firm: Sales: $1, 850 Cost of Goods Sold: $501 Inventory: $124 Accounts Receivables: $188 Accounts Payables: $153 Based on this information, calculate the firm's Operating Cash Conversion Cycle.
Practice Set 1) Use the information above to compute the number of days in the cash conversion cycle for each year. 2) Did the company manage cash more effectively in the current year? Current Year Prior Year Average Accounts Payable, $7,723 $ 11,668 Average Accounts Receivable, 26,605 17,862 Average Inventory 10,024 9,415 Net Sales 175,000 125,000 Net Purchases 92,000 108,000 Cost of goods sold 87,000 118,000
Question Content Area Cash and accounts receivable for Adams Company are provided below: Current Year PriorYear Cash $76,835 $63,500 Accounts receivable (net) 48,794 78,700 Based on this information, what is the amount and percentage of increase or decrease that would be shown with horizontal analysis? Enter a decrease using a minus sign before the amount and the percentage. Account Dollar Change Percent Change Cash $fill in the blank 1 fill in the blank 2 % Accounts Receivable $fill in the blank 4 fill in the blank 5 %
Computing cash flow items—direct method Consider the following facts: a. Beginning and ending Accounts Receivable are $24,000 and $20,000, respectively. Credit sales for the period total $68,000. b. Cost of goods sold is $77,000. c. Beginning Merchandise Inventory balance is $29,000, and ending Merchandise Inventory balance is $26,000. d. Beginning and ending Accounts Payable are $12,000 and $16,000, respectively Requirements Compute cash collections from customers. Compute cash payments for merchandise inventory.
Cash and accounts receivable for Adams Company are as follows: Current Prior Year Year Cash $70,000 $50,000 Accounts receivable (net) 70,400 80,000 What is the amount and percentage of increase or decrease that would be shown with horizontal analysis? Enter a decrease using a minus sign before the amount and the percentage. Account Dollar Change Percent Change X % Cash Accounts Receivable $ X X X % increase decrease ✓ ✓
Calculate Cash Conversion Cycle (CCC) from the following; Average collection period 30 Average payment period - 20 Average inventory -6,000 COGS per day - 150 a. 70 days b. 90 days c. 30 days d. 50 days
Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400

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