Question
The following information is extracts from the financial statements of the Better Manufacturers for the year 31 December 2019. Accounts Payable in the beginning OMR
The following information is extracts from the financial statements of the Better Manufacturers for the year 31 December 2019.
| Accounts Payable in the beginning | OMR 140,000 |
| Accounts Payable at the end | OMR 100,000 |
| Average fixed assets for the year | OMR 240,000 |
| Accounts Receivable in the beginning | OMR 110,000 |
| Accounts Receivable at the end | OMR 50,000 |
| Average Inventory | OMR 90,000 |
| Sales | OMR 400,000 |
| Purchases | OMR 500,000 |
| Cost of goods sold | OMR 310,000 |
| Fixed Assets | OMR 150,000 |
|
| Cash sales were 10% of the total sales. Cash Purchases were 20% of the total Purchases. |
What is the Average inventory conversion period?
a. 81 Days
b.106 Days
c.77 Days
d.110 Days
What is the Average Payment Period?
a.77 Days
b.110 Days
c.106 Days
d.81 Days
What is the Average receivable collection Period?
a.106 Days
b.81 Days
c.110 Days
d.110 Days
What is the Cash Conversion Cycle?
a.106Days
b.81 Days
c.77 Days
d.110 Days
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
7th Edition
0912503688, 978-0912503684
