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jasenka [17]
3 years ago
7

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]3 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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Distributing Cash Dividends to Preferred and Common Shareholders Dechow Company has outstanding 20,000 shares of $50 par value,
Anna11 [10]

Answer:

Preferred Stock = $60,000 and $3.00

Common Stock = $100,000 and $1.25

Explanation:

Dividends

Preferred Stock has preference when it comes to dividends payments. The remaining dividends are then paid to Common Stockholders.

Preferred Stock dividend = 20,000 x $50 x 6% = $60,000

Common Stock dividend = $160,000 - $60,000 = $100,000

Dividends per share

Preferred Stock dividend =  $60,000 ÷ 20,000 shares = $3.00

Common Stock dividend =  $100,000 ÷ 80,000 shares = $1.25

8 0
3 years ago
The following general capital assets were owned by the Town of Otterville: Town buildings $ 3,250,000 Intangible assets 1,000,00
Zielflug [23.3K]

Answer:

The amount of  $5,250,000 should be recorded as capital assets in the town's governmental activities accounts

Explanation:

Capital Assets: The capital assets are that asset that is not made for a sale. It records only tangible assets like- cars, bonds, investment properties, etc,

The computation of the capital assets which is recorded in the town's governmental activities accounts is shown below:

= Town buildings +  Streets, sidewalks, and water lines 2,000,000

= $3,250,000 +  $2,000,000

= $5,250,000

So, the intangible assets is not a capital asset. Therefore, we do not consider in the computation part.

5 0
3 years ago
____________ are short-lived items that facilitate routine operations. Consequently, they are repurchased frequently. This categ
madam [21]

Answer:

The correct answer is letter "B": Operating supply.

Explanation:

Operating supplies are items used in the day-to-day operations of a business that are not related directly to the production of goods at any stage but could be important for the natural development of the activities within the business. They are consumables such as <em>light bulbs, toilet paper, hand soap, pencils, </em>and <em>copy paper </em>just to mention a few<em>.</em>

6 0
3 years ago
Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,500 for gasoline on t
Pie

Answer:

A.$2,250

B.$1,152

Explanation:

A.

$1500 + 3000*[3000/12000]

$1,500 + $750

= $2,250

B.

{[820/12000]*3000} + {[820/1300]*1500}

=$205 +$946

=$1,152

6 0
3 years ago
Which of the followings is true: a) the WBS is the basis for project schedules, budgets, and controls. b) work packages are the
Alona [7]

Answer:

Option D; both options A and B.

a) THE WBS IS THE BASIS FOR PROJECT SCHEDULES, BUDGETS, AND CONTROLS.

b) WORK PACKAGES ARE THE BASIS FOR PROJECT SCHEDULES, BUDGETS, AND CONTROL.

Explanation:

A work breakdown structure (WBS) is a visual tool for defining and tracking a project deliverable and all the small components needed to create it.

A work-breakdown structure (WBS) in project management and systems engineering, is deliverable oriented breakdown of a project into smaller components. A work breakdown structure is a key project deliverable that organizes the team's work into manageable sections. It is a basis for project scheduling, cost control, and project budget.

Therefore, both options A and B are true;a) THE WBS IS THE BASIS FOR PROJECT SCHEDULES, BUDGETS, AND CONTROLS.

b) WORK PACKAGES ARE THE BASIS FOR PROJECT SCHEDULES, BUDGETS, AND CONTROL.

8 0
3 years ago
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