Mennitts Bowlarama wants to determine their inventory management performance during their past year of operations. Calculate their

Question:

Mennitt’s Bowlarama wants to determine their inventory management performance during their past year of operations. Calculate their inventory days of supply, days receivables outstanding, days payables outstanding, and cash-to-cash cycle time, and then assess their performance. Use the following information: Inventory on-hand at beginning of the year = $156,000; inventory on-hand at end of the year = $145,000; annual cost of goods sold = $895,000; average annual accounts receivable = $26,000; annual credit sales = $68,000; beginning of year accounts payable = $130,000; end of year accounts payable = $186,000; total annual purchases = $1.05 million.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...