help. Will like if correct
Both the inventory conversion penod and payables deferral penod use the average daily coGs in their dnominatorn, whereas the average collection Current apsets should be divided by sales, but current habilitis should be divided by the cocis. goods are sola. The management at Hungry Whale Eectuonics Company wants to continue its internal dercussions related to its cash manapenent. One of the finance team members nresents the following case about Extensve Enterpise to has cohorts: Hungry. Whale's CFO is interested in determining the length of time funds are tied up in working capital, Use the information in the precedirig table to Woth the inveritory conversion period and payables deferal penod we the average daty cocG in their denorninatorn, whereas the average cellection period uses average daily sales in its denominator. Why do these measures use difierent inputs? Current assets should ber divided by sales, but carrent fisbidies should be divided by the cocs. goods ine sold. tearn member presents the following case abcut fateasive thierpise to his cohorts: erral period use the average daily COGS in their der do these measures use different inputs? Current assets should be uivouro oy sales, but current liabilities should be divided by the COGS. Inventory and accounts payable are carried at cost on the balance sheet, whereds jecounts recel goods are sold. The management at Hungry Whale Electronics Company wants to continue its internal discussions related to Both the inventory conversion per period uses average daily sales in Current assets should b is deferral period use the average daily COGS in r. Why do these measures use different inputs? es, but current liabilities should be divided by the Extensive Enterprise's maragement plans to finance its operations with bank loans that will be repaid as soon as cash is available. The company's management expects that it will take 60 davs to manufacture and sell its products and so days to receive payment from its. customersi Lxterisive's cro his told the rest of the manigement team that thity should expect the length of the bank loans to be approximistely 110 days. Which of the following responses to the cross statement is most accurater: The CFOS apploxination of the lengti of the tank loans should be accurate, because it will take 110 days for the conpany to mamufacture, sel, and collect cash for its goods. All these things must occur for the company to be able to repar its loanw from the tuank loan by the armount of chre Both the inventory conversion pe period uses average daily sales in s deferral period use the average daily COGS in thein Why do these measures use different inputs? Current assets should ral period use the average daily COGS in the to these measures use different inputs? Current assets should be divided by sales, but current liabilities should be divided by the CC Inventory and accounts payable are carried at cost on the balance shicet, whereas accounts goods are sold. The management at Hungry Whale Electronics Company wants to continue its internal discussions relat team members presents the following case about Extensive Enterprise to his cohorts: Hungry Whale Electronics Company is a mature firm that has a stable flow of business. The following data was taken from its financial statements last year
