1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nuetrik [128]
3 years ago
8

Consider the following financial statement information for the Sourstone Corporation: Item Beginning Ending Inventory $11,482 $1

2,280 Accounts receivable 6,751 7,281 Accounts payable 7,052 7,393 Net sales $140,403 Cost of goods sold 88,213 Assume all sales are on credit. Calculate the operating and cash cycles.
Business
1 answer:
Nadusha1986 [10]3 years ago
4 0

Answer:

The operating and cash cycles is 134.80 days and 75.04 days respectively.

Explanation:

The computation of the operating and the cash cycle is shown below:

The operating cycle = Days inventory outstanding + days sale outstanding

where,

Day inventory outstanding = (Beginning inventory + ending inventory) ÷ cost of goods sold × number of days in a year

= ($11,482 + $12,280) ÷ $88,213 × 365 days

= ($23,762 ÷ $88,213) × 365 days

= 98.32 days

Day sale outstanding = (Beginning  Accounts receivable + ending Accounts receivable) ÷  Net sales × number of days in a year

= ($6,751 + $7,281) ÷ $140,403 × 365 days

= ($14,032 ÷ $140,403) × 365 days

= 36.48 days

Now put these days to the above formula  

So, the days would equal to

= 98.32 days + 36.48 days

= 134.80 days

Now The cash cycle = Days inventory outstanding + days sale outstanding - days payable outstanding

where,

Day payable outstanding = (Beginning Accounts payable + ending Accounts payable) ÷  cost of goods sold  × number of days in a year

= ($7,052 + $7,393) ÷ $88,213 × 365 days

= ($14,445 ÷ $88,213) × 365 days

= 59.76 days

Now put these days to the above formula  

So, the days would equal to

= 98.32 days + 36.48 days - 59.76 days

= 75.04 days

You might be interested in
2. NEIU Company has no beginning and ending inventories, and reports the following information for its only product: Direct mate
Mrac [35]

Answer:

Product cost per unit = $13

Explanation:

<em>Absorption costing values units of inventory and production using full cost per unit. Full cost per unit includes variable cost and a portion of fixed production overheads. The fixed production overhead are charged to cost units using predetermined overhead absorption rate.</em>

The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads.

Total full absorption cost = 125,000 + 100,000 + 75,000 + 25,000=325,000

Full cost per unit = Total full absorption cost/Number of units

                            = 325,000/25,000 =$13

<em>Note that we excluded non- production cost like selling and administrative from the computation because they are not related to production</em>

Product cost per unit = $13

4 0
2 years ago
The following information pertains to Crane Company. 1. Cash balance per bank, July 31, $11,136. 2. July bank service charge not
Alexus [3.1K]

Answer:

1. Adjusted cash balance per bank $13,760

Adjusted cash balance per books $13,760

2. Jul-31

Dr Cash $2,560

Cr Notes Receivable $2,560

Jul-31

Dr Miscellaneous Expense $64

Cr Cash $64

Explanation:

1. Preparation of a Bank reconciliation statement

at July 31, 2022

CRANE COMPANY

Bank Reconciliation

July 31,2022

Cash balance per bank statement $11,136

Add: Deposits in transit $4,544

Less: Outstanding checks ($1,920)

Adjusted cash balance per bank $13,760

Cash balance per books $11,264

Add: Electronic Funds transfer Received $2,560

Less: Bank service charge ($64)

Adjusted cash balance per books $13,760

2. Preparation of the adjusting journal entries at July 31 on the books of Crane Company.

Jul-31

Dr Cash $2,560

Cr Notes Receivable $2,560

Jul-31

Dr Miscellaneous Expense $64

Cr Cash $64

7 0
2 years ago
The typical risks of a cost leadership strategy include: a. the inability to balance high differentiation and low price. b. exce
vichka [17]

Answer: The correct answer is "b. production and distribution processes becoming obsolete.".

Explanation: The typical risks of a cost leadership strategy include production and distribution processes becoming obsolete because to maintain cost leadership, the production and distribution processes must always be in constant observation to modify if necessary in order to maintain competitiveness and not remain stuck attached to a production and distribution model that as a consequence of innovations in the competition may become obsolete.

8 0
2 years ago
Read 2 more answers
A citizen of one country working in another country and employed by an organization headquartered in the first country in called
KonstantinChe [14]

Answer:

A person who works in a company belonging to another country is called an expatriate. These high-ranking personnel are generally sent to other countries, mainly to promote the organizational culture of the company and for corporate purposes to be fulfilled.

It can also be used to train staff in the new country where there are expansion plans.

For example: An operations manager who is moved to another country to manage a new plant of a group, this will be responsible for promoting knowledge and align the ideas of the parent company with the company of the other country.

5 0
3 years ago
What is an economic and non economic activity explain me in short and give one example each​
Sonbull [250]

Answer:Economic activities are those activities of man which are undertaken for earning money. Whereas non economic activities are those activities that are not undertaken for any monetary gain.

Explanation:

4 0
3 years ago
Read 2 more answers
Other questions:
  • Makes it illegal for u.s. companies and citizens to bribe foreign officials to influence a governmental decision?
    9·1 answer
  • Name at least four factors that a lender investigates when considering whether you are creditworthy.
    5·2 answers
  • A deposit would appear as a debit on your bank statement. <br><br> True or False
    10·2 answers
  • Customer environmental intelligence includes:
    8·1 answer
  • A company would like to invest in a capital budget project that will be worth $500,000 in 40 years. How much should this company
    5·1 answer
  • Pete and Shirley are filing a joint return. They have two dependent children. What is the total amount of their exemptions for t
    8·1 answer
  • An investor sells short 200 shares of ABC stock at $5.25 a share. He sells two put contracts (100 shares each) with a striking p
    10·1 answer
  • Firm X has total earnings of $49,000, a market value per share of $64, a book value per share of $38, and has 25,000 shares outs
    13·1 answer
  • Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead ra
    6·1 answer
  • What is the primary product focus for the lego company? select one: a. custom sculpture b. recycled plastic c. electronic device
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!