Question
Cash Conversion Cycle...I need help calculating the rest of the formulas This is from Apple Stocks on Yahoo financae Annual sales (84,263,000), cost of goods
Cash Conversion Cycle...I need help calculating the rest of the formulas This is from Apple Stocks on Yahoo financae
Annual sales (84,263,000), cost of goods sold(131,376,000), and depreciation expense (60,024,000)
Inventories (2,132,000), accounts receivable (29,299,000), and accounts payable (59,321,000)
Inventory turnover ratio formula=Inventory/cost of goods sold*365
2,132,000/131,376,000=5.92 (inventory turnover)
Accounts Receivable turnover formula=net sales/accounts receivable
-107,137,000/29,299,000=84,262,993.47 (a turnover)
Accounts Payable turnover formula=total purchases/Average Accounts Payable
Day of sales formula=ending inventory/cost of goods sold*365
Number of Days of Credit or Days of Sales Outstanding=accounts receivable/credit sales*number of days
Days of Payable Outstanding=Accounts Payable/cost of goods sold in accounting period*days in accounting period
CCC = DSI + DSO DPO
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