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4 years ago

Shulman Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle?

Business

1 answer:

Elanso [62]4 years ago

8 0

Answer:

Option (D) is correct.

Explanation:

Inventory conversion period:

= (365 days × Inventory) ÷ Cost of goods sold

= (365 days × 4,500) ÷ 30,000

= 54.75

Average collection period:

= (365 days × Accounts receivable) ÷ sales

= (365 days × $1,800) ÷ 45,000

= 14.60

Payable deferral period:

= (365 days × Accounts payable) ÷ COGS

= (365 days × $2,500) ÷ 30,000

= 30.42

cash conversion cycle:

= Inventory conversion period + Average collection period - Payable deferral period

= 54.75 + 14.60 - 30.42

= 38.93 or 39 days

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3 years ago

An amount of $46,000 is borrowed for 9 years at 4% interest, compounded annually. if the loan is paid in full at the end of that

Eddi Din [679]

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4 years ago

Assume that you borrowed money from your grandmother to attend college. Your deal with her is that you will pay her $1,000 per y

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Answer:

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Explanation:

Giving the following information:

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3 years ago

Cool Taste Company recorded $5,000 in sales on account for the week. What effect does this transaction have on the accounting eq

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Answer:

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3 years ago

If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected

AleksAgata [21]

Answer:

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Explanation:

Data provided as per the question is below

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Therefore for computing the utilization we simply divide design capacity by actual output.

7 0

3 years ago