Question
Bakers Dozen Inc. The Balance Sheet and Income Statement of Baker Dozen Inc. as of and for the twelve months ended December 31, 2015 shows
Bakers Dozen Inc.
The Balance Sheet and Income Statement of Baker Dozen Inc. as of and for the twelve months ended December 31, 2015 shows the followinginformation (in thousands):
Opening (Prior Period) and Ending balances
Accounts ReceivableOpening $4,155,Ending. $4,650
Accounts Payable Opening $5,200, Ending $5,750
Inventory Opening $2,150,Ending 3,150
Sales on Credit (12months) $57,450
Cost of Goods Sold (COGS) (12 months) 45,100
Inventory Conversion Period: 21 days
# of days in receivable: 28 days
Bakers Dozen Inc.
Utilizing the information in questions 1 for Baker Dozen, what was the full cash conversion cycle for Baker Dozen in 2015? Hint: You will first need to calculate the Days Payables Outstanding.
94 days
44 days
49 days (incorrect)
5 days
The formula that I found to calculate this is DIO+DSO-DPO, but the answer I got with that is not a choice here. Can anyone help explain how I am supposed to do this?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
