National Co. has P5 million in inventory and P2 million in accounts receivable. Its average daily sales are P250,000. The company has P1.5 million in accounts payable. Its average daily purchases are P50,000. What is the length of the company’s inventory conversion period
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National Co. has P5 million in inventory and P2 million in accounts receivable. Its average daily sales are P250,000. The company has P1.5 million in accounts payable. Its average daily purchases are P50,000. What is the length of the company’s inventory conversion period?
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- Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.Crane Inc. has sales of $4,900,000, a gross profit margin of 24.0 percent, and inventory of $1,000,000. What are the company’s inventory turnover ratio and days’ sales in inventory? (Round inventory turnover ratio to 3 decimal places, e.g. 12.555 and days' sales in inventory to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Inventory turnover ratio times Days’ sales in inventory days
- Rizza Co. has an average age of inventory equal to 25 days. If its end of year inventory level is P8,500, then what does that imply for the cost of goods sold during the year? (round to the nearest peso)What is the inventory period for a firm with an annual cost of goods sold of P5million, P1.2 million in average inventory, and a cash conversion cycle of 75days?Rascal Flats has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company’s COGS are $2,000,000 and its current liabilities are $1,000,000. What is the company’s inventory turnover ratio?
- Zane Corporation has an inventory conversion period of 64 days,an average collection period of 28 days, and a payables deferral period of 41 days.a. What is the length of the cash conversion cycle?b. If Zane’s annual sales are $2,578,235 and all sales are on credit, what is the investmentin accounts receivable?c. How many times per year does Zane turn over its inventory? Assume that the cost ofgoods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio.Assume a firm's inventory level of $11,500 represents 33 days of sales. What is the annual cost of goods sold? and what is the inventory turnover ratio?Himantayon Company provided the following information for the current year: Beginning inventory P400,000, Freight in P300,000, Purchases returns P900,000, Ending Inventory P500,000, Selling expenses P1,250,000, Sales discount P250,000. The cost of goods sold is six times the selling expenses. What is the amount of gross purchases?
- JKL Company’s sales are $1,000,000 and the Cost of Sales is $400,000 The beginning and ending inventory balances are $240,000 and $260,000, respectively. What is the inventory turnover?Earnings per share: O a. will decrease if net income decreases and the number of treasury shares increases. O b. will decrease if net income decreases and the number of shares outstanding increases. c. is the total amount of dividends paid per year on a per share basis. o d. will increase if net income increases and the number of shares outstanding increases. O e. is defined as the addition to retained earnings divided by the number of shares outstanding.What is the inventory turnover if an annual credit sales value of 365 million; accounts receivable beg. of 36.5 million; cost of goods sold of 240 million, and beginning inventory of 20 million? a. 12 times b. 1.5 times c. 6.6 times d. 10 times