Answer:
days on inventory 57 + collection cycle 163- payment cycle 63
CCCT = 157 days
Explanation:
The cash-to-cash measures the times from the company paid his good from the time it collect from the customer:
days inventory outstanding + collection cycle - payment cycle
<u>days inventory outstanding:</u>
Where:
where:
COGS $ 1,790,000
Beginning Inventory: $ 273,000
Ending Inventory: $ 290,000
Average Inventory: $ 281,500
Inventory TO 6.358792185
Days on Inventory 57
<u>Collection cycle:</u>
where:
Purchases: 1,575,000
Beginning AP: 227,500
Ending AP: 316,200
Average AP: 271,850
AP TO 5.793636196
payment cycle 63
<u>Collection cycle</u>
Sales 102,000
Average AR 45,500
AR TO 2.241758242
collection cycle 163
Answer:
Note: The organized question is attached
<u>Description of each transaction</u>
1. Merchandise purchased on account as a cost of $39,200, which is $40,000 less 2% discount of $800
2. Paid fright charge of $450
3. An allowance or return of merchandise was granted by the seller, $4,900, which is an invoice amount of $5,000 less 2% discount of $100
4. The balance due of $34,300 ($39,200 - $4,900) was paid within the discount period
Answer: Option (A) is correct.
Explanation:
The statement in the question best describe the economic concept of real cost of some activity that is foregone to get the satisfaction from the other activity.
There is one more economic concept that is opportunity cost. Opportunity cost refers to the cost or benefit that must be give up by choosing some other alternative.
In our case, you have to decide whether you want to join accounting club or economics club and timings of both the clubs are same. Therefore, you have to choose one club and give up the other one. The cost of giving up is the opportunity cost.
A written promise to pay a specific amount of money on a specific date is called a promissory note.
A promissory note, also known as a note payable, is a legal document in which one party agrees in writing to pay another party a certain amount of money on demand or at a specific future time, subject to certain terms and conditions.
A promissory note is a formal commitment to pay back borrowed funds. People can borrow money from banks and other lending institutions, as well as from one another. A promissory note is created when someone borrows money in order to legally protect both the payor and the payee. If you're loan a significant sum of money, a promissory note is very crucial. The promissory note serves as a formal record of your transaction, protecting you and guaranteeing that the borrower or organization will pay back the loan.
To know more about promissory note refer to: brainly.com/question/948552
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