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Lyrx [107]
2 years ago
12

Calculate (a) the accounts receivable period, (b) accounts payable period, (c) inventory period, and (d) cash cycle for the foll

owing firm. (Use 365 days a year. Do not round intermediate calculations. Round your answers to 1 decimal place.) Income Statement Data: Sales $ 5,000 Cost of goods sold 4,200 Balance Sheet Data: Inventory $ 550 Accounts receivable 110 Accounts payable 270
Business
1 answer:
lora16 [44]2 years ago
3 0

Answer:

a. Accounts receivable period:

=  Accounts receivable turnover ratio * 365 days

= (Average accounts receivable / Sales) * 365

= (110 / 5,000) * 365

= 8.0 days

b. Accounts Payable period:

= Accounts payable turnover ratio * 365

= (Average accounts payable / Cost of goods sold) * 365

= (270 / 4,200) * 365

= 23.5 days

c. Inventory period:

= Inventory turnover ratio * 365

=  (Average inventory / Cost of goods sold) * 365

= (550 / 4,200) * 365

= 47.8 days

d. Cash cycle:

= Inventory period + Accounts receivables period - Accounts payable period

= 47.8 + 8 - 23.5

= 32.3 days

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4 0
3 years ago
The prepaid insurance account had a balance of $3,000 at the beginning of the year. The account was debited for $32,500 for prem
Nitella [24]

Answer:

A.  Date   Account Title                 Debit        Credit

                Insurance expense      $30,700

                ($3000+$32500-$4800)

                       Prepaid insurance                  $30,700

B.   Date   Account Title                Debit          Credit

                 Insurance expense     $30,700

                          Prepaid insurance                 $30,700

5 0
3 years ago
Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company grante
raketka [301]

Answer:

1. $108 million fair value of award

2. December 31, 2021

($ in millions)

Dr Compensation expenses 54

Cr Paid-in capital—restricted stock 54

December 31, 2022

Dr Compensation expenses54

Cr Paid-in capital—restricted stock 54

Dr Paid-in capital—restricted stock 108

Cr Common stock 18

Cr Paid-in capital—excess of par (remainder) 90

Explanation:

Allied Paper Products, Inc

1.

$6 fair value per share x 18million shares granted

= $108 million fair value of award

2. Journal entries

December 31, 2021

($ in millions)

Dr Compensation expense ($108 million ÷ 2 years) 54

Cr Paid-in capital—restricted stock 54

December 31, 2022

Dr Compensation expense ($108 million ÷ 2 years) 54

Cr Paid-in capital—restricted stock 54

Dr Paid-in capital—restricted stock 108

Cr Common stock (18 million shares x $1 par) 18

Cr Paid-in capital—excess of par (remainder) 90

5 0
3 years ago
The president wishes to increase spending for education by $4 billion but also maintain a balanced budget. Therefore, taxes will
castortr0y [4]

Answer:

it will increase

Explanation:

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3 years ago
The index weighting that results in portfolio weights shifting away from securities that have increased in relative value toward
Sliva [168]

Answer: B. Fundamental weighting.

Explanation:

A fundamentally weighted index refers to a type of equity index whereby the components that are chosen based on the fundamental criteria like the dividend rates, book value, revenue, dividend rates, etc.

Fundamental weighting is the index weighting which results in portfolio weights shifting away from securities that have increased in relative value toward securities that have fallen in relative value whenever the portfolio is rebalanced.

3 0
3 years ago
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