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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

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In the early days of selling, companies studied and wrote down the sales pitches of their most successful people, and created ca
Nezavi [6.7K]

Answer:

True

<h3>When does a salesperson tell a customer that a product will last a lifetime?</h3>
  • Statements such as "The performance of this product is top-notch" can be classified as expressed warranties.
  • When a salesperson tells a customer that a product will last a lifetime, such a claim is most likely an example of sales puffery.

To learn more about it, refer

to brainly.com/question/24553900

#SPJ4

8 0
1 year ago
Groupong Inc. recently paid a $2.78 annual dividend on its common stock. This dividend increases at 3.50 percent per year and th
liq [111]

Answer:

c) 11%

Explanation:

The question is to determine the rate of return on Groupong Inc's

The rate of return represents an investment's net gain or net loss calculated over a period of time and usually expressed in terms of the percentage of the initial cost of investment.

The rate of return in this question is calculated as follows:

Rate of Return = (The Dividend for the next year/ the current price of the share) + The Growth rate

The dividend for the next year = current year dividend x (1+r), where r is 3.5

= 2.78 x (1+0.035)

=2.78 x 1.035

= (2.8773/38.3) + 0.035

=0.1101 or 11%

5 0
3 years ago
Natalie makes $2000 per month she spends 100 on credit card payments what is her debt to income ratio
chubhunter [2.5K]
Monthly income = 2000 dollars
Debt to pay = 250 + 100 = 350 dollars
Let's find the ratio of debt to income.
=> 350 / 2000 = 0.175
=> 0.175 * 100 = 17.5 percent.
Thus 17.5% of his salary goes to his debts for credit card and auto loan.
5 0
3 years ago
A representative from a prestigious industry association just emailed. She asks for your participation on an expert panel that w
AveGali [126]

Answer:

Thank the representative and accept the offer to cover expenses of your participation.

Explanation:

The response that would be most effective for helping you to make an ethical decision is to thank the representative and accept the offer to cover expenses of your participation.

For being invited to participate on an expert panel that will be held at an upcoming professional conference is such a great privilege and opportunity, thus, you should first express your gratitude for the honor and accept the offer covering your expenses.

Having your expenses covered, would make you channel all your time and energy into preparing, researching and organized for the event.

4 0
3 years ago
Company A purchases Company B. This is a 100% equity purchase which means that Company A acquires all of the Company B assets an
Drupady [299]

Answer:

Company A and Company B

Calculation of Goodwill on Acquisition:

= $212,433

Explanation:

a) Current market value of:

 Tangible physical assets = $1,234,567

  Intangible asset =                 $125,000

Total assets' value =            $1,359,567

less Liabilities:

  Operating =  $160,000

  Financial =     600,000      ($760,000)

Net value of assets =             $599,567

Purchase Price (Company B) $812,000

Goodwill                                  $212,433

b) Company A acquired Goodwill when it bought over Company B.  This is an intangible asset which is calculated by subtracting the net value of assets (the difference between the fair market value of the assets and liabilities) from the purchase price of the acquired subsidiary.

3 0
3 years ago
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