Question
ABC Company has a cash cycle of 13.75 days, an operating cycle of 18.53 days, and an average collection period of 7 days. The company
ABC Company has a cash cycle of 13.75 days, an operating cycle of 18.53 days, and an average collection period of 7 days. The company reported cost of goods sold of $276,088. What is the company's average balance in Accounts Payable?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box
Compute the Accounts Payable (A/P) period based on the following information:
Average A/P balance = $64,723
Annual Cost of Goods Sold = $323,692
Assume 365 days
Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
ABC Company has an average collection period of 34 days and factors all of its receivables immediately at a 1.8 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing?
Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
On July 15th, you purchased $10,000 worth of goods. The terms of the sale were 3/5, net 31. What is the effective annual rate of interest for the credit period for this sale?
Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
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