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 liabilities: 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 liabilities: 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:
1.length of inventory conversion period?
2.length of receivables conversion period?
3.length of operating cycle?
4.length of the payables deferral period?
5.length of cash convertibe cycle?
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Mathematics For Business
Authors: Stanley A Salzman, Charles D Miller, Gary Clendenen
8th Edition
0321357434, 9780321357434
