Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

kindly assist as soon as possible 5 6 2. A. John Global's annual credit sales are $16 million; the accounts receivable balance is $1.5 million;

image text in transcribed

kindly assist as soon as possible

5 6 2. A. John Global's annual credit sales are $16 million; the accounts receivable balance is $1.5 million; the cost of goods sold is $11.5 million; the inventory balance is $600,000, and the balance in accounts payable is $650,000. 11 12 i.. Compute John Global's operating cycle. [10 marks] 17 18 ii. Compute cash conversion cycle [ 7.5 marks] 23 24 (OR) 2 B. i). The most recent balance sheet of Alexis Inc. (in millions) is as follows: 8 35 57 100 Current asset Cash and marketable securities Accounts receivable Inventory Total Current liabilities Accrued wages and taxes Accounts payable Notes payable Total 6 31 28 65 6 marks a) Calculate Alexis ndls current ratio, and acid test quidk) ratio b) Benchmark ratios for current and acid-test (quick) ratios are band ano, respectively. What can you say about the liquidity of Alexis no's operations based on these two ratios? 5.8 marks) Paper Clip Office Supply had $21,000,000 in sales last year, es total asset turnover was so interest expense was $100,000 (5% on its $2.000.000 of debt). The company is financed entirely with debt and common equity. What is Paper Clips debt ratio [6 marks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory And Practice

Authors: Prasanna Chandra

10th Edition

9353166527, 978-9353166526

More Books

Students also viewed these Finance questions

Question

2. Eve really enjoys the science center.

Answered: 1 week ago

Question

6. Does your speech have a clear and logical structure?

Answered: 1 week ago