Assuming that a company has 365 million in annual sales

Assignment Help Accounting Basics

Reference no: EM13582707

answer the following questions related to investments in inventory and accounts receivable:

1.How is inventory turnover calculated?
2.Explain how inventory turnover affects the amount of cash that must be invested in inventory.
3.How is accounts receivable turnover calculated?
4.Explain how accounts receivable turnover affects the amount of cash that must be invested in accounts receivable.
5.Assuming that a company has $365 million in annual sales, and a gross margin of 20%, how much investment will each additional day of sales in inventory require?
6.Assuming that a company has $365 million in annual sales, and a gross margin of 20%, how much investment will each additional day of sales in accounts receivable require?

Reference no: EM13582707

Questions Cloud

Comment on the evidence available concerning equality of : in st. paul the annual unemployment rates in percentage during the years 1995-2000 are3.6 3.9 3.2 2.9 3.0 3.1and the

This special order would have no effect on the companys : a customer has requested that inga corporation fill a special order for 2900 units of product k81 for 34 a unit. while

What are the acceptable inventory valuation methods under : what are the acceptable inventory valuation methods under the u.s. generally accepted accounting principles gaap?how

Assume that the measurements represent a random sample : question during 9 surveys throughout the past decade the apartment vacancy rates in minneapolis in percentage were

Assuming that a company has 365 million in annual sales : answer the following questions related to investments in inventory and accounts receivable1.how is inventory turnover

Assume that the measurements represent a random sample from : q1. during 9 surveys throughout the past decade the apartment vacancy rates in minneapolis in percentage were found to

Nicomachus defined a fifth proportion to exist whenever : nicomachus defined a fifth proportion to exist whenever among three terms the middle term is to the lesser as their

Discuss how and why interest expense is allocated between : discuss how and why interest expense is allocated between measurement periods.as a business manager should you be

On february 5 land building and equipment were purchased : on february 5 land building and equipment were purchased for a total amount of 1220000. the assessed values of these

User Account

All Pages