A firm has $520 in inventory, $1,860 in fixed assets, $190 in accounts receivabl

Question

A firm has $520 in inventory, $1,860 in fixed assets, $190 in accounts receivables, $210 in accounts payable, and $70 in cash. What is the amount of the current assets? Crandall Oil has total sales of $1,349,800 and costs of $903,500. Depreciation is $42,700 and the tax rate is 34 percent. The firm does not have any interest expense. What is the operating cash flow? What is the change in the net working capital from 2010 to 2011? Al's Sport Store has sales of $897,400, costs of goods sold of $628,300, inventory of $208,400, and accounts receivable of $74,100. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?

Explanation / Answer

current assets = 520 +190 +70 = $780 operating cash flow =Net Income + Depreciation operating cash flow = (1,349,800-903,500- 42,700)*(1-34%) + 42,700 =$309076 days to sell inventory = value of inventory by the value of sales and multiplying by 365. = 208,400/897,400*365 =84.76 days

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