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3 years ago

Consider the following financial statement information for the Hop Corporation:

Business

1 answer:

EastWind [94]3 years ago

7 0

Answer: Operating cycle = 84.70 days

Cash cycle = 41 days

Explanation:

Beginning inventory = $11,100

Ending Inventory = $12,100

Average inventory = ($11100 + $12100)/2 = 11600

Average Accounts receivable = (6,100 + 6,400)/2 = 6250

Average Accounts payable = (8,300 + 8,700)/2 = 8500

Day sales in inventory = Average inventory × 365 / Cost of goods sold

= 11600 × 365 / 71000 = 59.63 days

Average collection period = Average receivable × 365 / Credit sales

= 6250 × 365 /91000 = 25.07 days

Average payment period = 43.70 days

Therefore, operating cycle will be:

= Day sales in inventory + Average collection period

= 59.63 days + 25.07 days

= 84.70 days

Cash cycle = Operating cycle - Average payment period

= 84.70 - 43.70

= 41 days

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The original data is :

Data for Hermann Corporation

Per unit Percent of sales

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Solution :

Present Proposed

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Contribution margin 96000 100000

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2 years ago

Each of the following items must be considered in preparing a statement of cash flows. Indicate where each item is to be reporte

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Answer:

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2 years ago

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Juniper Company uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30

kozerog [31]

Answer:

Amount of cash paid on Aug 16 = $8,167.50

Explanation:

As for the information provided the terms of purchase are,

1% discount if payment made within 10 days,

and a total credit period of 30 days without any discount beyond 10 days.

Here, inventory purchased on August 7 = $9,750

Less; Return on 11 August = $1,500

Net Purchases = $8,250

Since payment is made on 16 August that is within 10 days from purchase discount will be received

= $8,250 $\times$ 1% = $82.50

Amount of cash paid on Aug 16 = $8,250 - $82.50 = $8,167.50

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3 years ago

Lena Company has provided the following data (gnore income taxes); 2016 revenues were $77,000. 2016 expenses were $48,600. Divid

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Answer:

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Answer:

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