21. Use the following financial statement information: Item Inventory Accounts R

Question

21. Use the following financial statement information: Item Inventory Accounts Receivable Accounts Payable Credit Sales Cost of goods Sold Beginning $1,500 2,300 1,400 Ending $1.800 2.600 1.100 $18.250 $14,500 The receivables period-49 days. Calculate the operating cycle. In a very short sentence interpret the result. Calculate the inventory period days. Calculate the cash cycle. In a very short The accounts payable period 31 interpret the result. e davs It has a policy of keeping at leas for the first

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Beginning Inventory                       1,500.00 Ending Inventory                       1,800.00 Average Inventory = (1500 + 1800)/2                       1,650.00 Cost of goods sold                     14,500.00 Inventory turnover = 14500/1650                                8.79 Inventory period in days = 365/8.79                             41.53 Operating Cycle = Days' Sales of Inventory + Days Sales Outstanding Operating Cycle = 49 + 41.53                             90.53 Company has operating cycle of 90.53 days Cash conversion cycle = Days Inventory outstanding + days Sales o/S - Days Payable O/S Cash conversion cycle = 49 + 41.53 - 31                             59.53 Company has cash conversion cycle of 59.53 days

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.