Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

note: all one question please fill in all blanks ! thank you (Activity ratios) The following financial information is for Ambroise Industries Inc.: Sales Cost

image text in transcribed
image text in transcribednote: all one question please fill in all blanks ! thank you
image text in transcribed
(Activity ratios) The following financial information is for Ambroise Industries Inc.: Sales Cost of goods sold Accounts receivable Inventory Accounts payable Total assets 2020 $4,597,000 2,022,680 592,140 839,220 203,930 1,863,860 2019 $4,290,000 1,887,600 555,350 765,160 211,610 1,821,290 Ambroise is a distributor of auto parts operating in eastern Ontario that offers 30-day terms and has all sales on credit. The company has a large inventory due to the number of parts it stocks for different makes and models of cars. Most of its suppliers offer terms of 30 days, and Ambroise tries to stay on good terms with its suppliers by paying on time. What is the average time it takes Ambroise to collect its accounts receivable? (Round answer to 1 decimal place, e.g. 18.4. Round intermediate calculations to 2 decimal places.) Average collection period days What is the average length of time that it takes Ambroise to sell through its inventory? (Round answer to 1 decimal place, e.g. 18.4. Round intermediate calculations to 2 decimal places.) Days to sell inventory days e Textbook and Media What is the average length of time that it takes Ambroise to pay its payables? (Round answer to 1 decimal place, e.g. 18.4. Round intermediate calculations to 2 decimal places.) days Accounts payable payment period The cash-to-cash cycle is the length of time from when a company purchases an item of inventory to when it collects cash from its sale, reduced by the days it takes to pay the related accounts payable. How long is Ambroise's cash-to-cash cycle? (Round answer to 1 decimal place, e.g. 18.4.) days Ambrose's cash-to-cash cycle e Textbook and Media Assume that Ambroise finances its inventory with a working capital loan from the bank. If Ambroise could improve its inventory management system and reduce the days to sell inventory to an average of 50 days, how much lower would the company's bank loan be? (Round answer to decimal places, eg. 45,482.) $ Company's bank loan would be

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 Accounting Version 3.0

Authors: Leah Kratz, Joe Ben Hoyle, C. J. Skender

3rd Edition

1453392904, 9781453392904

More Books

Students also viewed these Accounting questions

Question

Describe the major barriers to the use of positive reinforcement.

Answered: 1 week ago