Question
Gates Industries balance sheet and income statement for the year ending December 31, 1978 are as follows: Balance Sheet ($ million) Cash$10.0 Accounts payable$15.0 Accounts
Gates Industries balance sheet and income statement for the year ending December 31, 1978 are as follows:
Balance Sheet ($ million)
Cash$10.0
Accounts payable$15.0
Accounts receivable15.0
Salaries, benefits, & payroll taxes payable3.0
Inventories*12.0
Long-term debt15.0
Fixed assets (net)30.0
Stockholders' equity34.0
Total assets$67.0
Total liab. & stock. equity$67.0
Income Statement ($ million)
Net sales (all credit)$125.0
Cost of sales75.0
Selling, general, & admin. expenses30.0
Other expenses13.0
Earnings after tax$7.0
*Note: Average inventories also equal $12.0 (million).
Determine the length of the firm's cash conversion cycle.
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
