Compute the operating cycle based on the following information:

Inventory Period = 36
Accounts Receivable Period = 29
Accounts Payable Period = 25

 

Question 4

 

Month	Sales $	Month	Sales $
Jan	35,230	July	49,671
Feb	25,211	Aug	27,787
Mar	27,787	Sep	35,230
Apr	49,671	Oct	27,787
May	35,230	Nov	25,211
June	25,211	Dec	49,671

The table contains the Sales estimates for the next year.

Sales are collected as follows:
In the month of Sales: 45%
In the next month: 27%
After 2 months: 12%
After 3 months: remainder is collected

What is the cash collection for November?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

 

 

Question 5

The terms of the sale were 2/3, net 41. What is the effective annual rate of interest? 

Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.

 

Question 6

The terms of the sale were 3/18, net 49. What is the effective annual rate of interest? 

Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.

 

Question 7

XYZ is a retailer and sells 107,000 units per year. It purchases from a single supplier. Fixed cost per order is $806 and carrying cost is $14 per unit. 

Suppose XYZ orders 6,000 units per order from the supplier. What are the total costs (sum of carrying costs and shortage costs)?