TO) Caleulate the sale-to-cash conversion period based on the following informat
ID: 2804664 • Letter: T
Question
TO) Caleulate the sale-to-cash conversion period based on the following information average inventories $120,000, average receivables-$90,000, average pa sold $182,500; and net sales- $365,000. ables- $40,000,cond of 1) Based on the following information, determine the venture's cash conversion cycle: le conversion period 112.9 days; sales-to-cash conversion period- $7.1 days; and conversion period-76.8 days. purchase-to-payment 12) Based on the following information, determine the average receivables that were outstanding Net ales S575,000; Sales-to-cash conversion period-57.1 days; purchase-to-payment conversion period and cost of goods sold $380,000. 13) Based on the following information, determine the venture's inventory-to-sale conversion period; cash conversion cycle - 250 days; sales-to-cash conversion cycle conversion period - 70 days. 60 days; and purchase-to-paymentExplanation / Answer
Answer 10.
Sale-to-cash Conversion Period = 365 * Average receivables / Net Sales
Sale-to-cash Conversion Period = 365 * $90,000 / $365,000
Sale-to-cash Conversion Period = 90 days
Answer 11.
Cash Conversion Cycle = Sale-to-cash Conversion Period + Inventory-to-sale Conversion Period - Purchase-to-payment Conversion Period
Sale-to-cash Conversion Period = 57.1 + 112.9 - 76.8
Sale-to-cash Conversion Period = 93.2 days
Answer 12.
Sale-to-cash Conversion Period = 365 * Average receivables / Net Sales
57.1 = 365 * Average receivables / $575,000
Average receivables = $89,952.02
Answer 13.
Cash Conversion Cycle = Sale-to-cash Conversion Period + Inventory-to-sale Conversion Period - Purchase-to-payment Conversion Period
250 = 60 + Inventory-to-sale Conversion Period - 70
Inventory-to-sale Conversion Period = 260 days
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