Question
BALANCE SHEET Assets Cash: 6.0 Accounts receivables: 14.0 Inventories: 12.0 Fixed assets: 40.0 TOTAL: 72.0 Liabilities Accounts payable: 10.0 Salaries: 2.0 Other current lialibilities: 10.0
BALANCE SHEET
Assets
Cash: 6.0
Accounts receivables: 14.0
Inventories: 12.0
Fixed assets: 40.0
TOTAL: 72.0
Liabilities
Accounts payable: 10.0
Salaries: 2.0
Other current lialibilities: 10.0
Long term debt: 12.0
Stockholders Equity: 38.0
TOTAL: 72.0
Average inventory over past 2 years equals 12.0
INCOME STATEMENT
Net sales: 100.0
Cost of sales: 60.0
Selling, geeral and admin expenses: 20.0
Other expenses: 15.0
Earnings after tax: 5.0
Calculate the following:
- length of inventory conversation period?
- length of receivables conversion period?
- length of operating cycle?
- length of the payables deferral period?
- length of cash convertibe cycle?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
