By how much would inventories have to decline

Assignment Help Accounting Basics
Reference no: EM133184134

Question - Company A has a very high inventory conversion period, which is resulting in a very high cash conversion cycle. The firm would like to lower its inventories such that their inventory conversion period is equal to the industry average of 33 days. By how much would inventories have to decline if the company could attain the industry average? The company's cost of goods sold is 150,750, inventory is 35,000.

Reference no: EM133184134

Questions Cloud

Efficiency and effectiveness in managing everyday life : 1. Give examples of efficiency and effectiveness in managing your everyday life.
International environmental conference in brussels : The Prime Minister of Canada is leaving to attend an international environmental conference in Brussels. As an expert on the environment, you have been asked to
What is your opinion of technical analysis : What is your opinion of technical analysis? How do you plan to use technical analysis as a part of your investment strategy
What is this partnership called : What is this partnership called? Why is it that Cadillac Fairview has endeavored to support these Canadian Olympians?
By how much would inventories have to decline : Company A has a very high inventory conversion period, which is resulting in a very high cash conversion cycle. By how much would inventories have to decline
What is the difference in the projected roes : A company's annual sales are $500,000; its fixed assets are $125,000; What is the difference in the projected ROEs between the restricted and related policies
Describe one advantage of multiple regression over indexing : a) Describe one scenario where features or variables are automatically generated
What effect would the proposed policy have : Payables deferral period is 50 days. What effect would the proposed policy have on the company's cash conversion cycle
Calculate the accounting rate of return of the system : The system will have a $230 salvage value at the end of its 5-year useful life. Calculate the accounting rate of return of the system

Reviews

Write a Review

Accounting Basics Questions & Answers

  Find the apple company annual report

Find the Apple company annual report. Do you notice any trends that are positive or negative? Does anything look good or bad that is notable?

  What forms of preferential treatment

What forms of preferential treatment can the holders of preference shares receive over and above the rights of holders of ordinary shares

  What will be the new balance on the accumulated depreciation

What will be the new balance on the accumulated depreciation account? What goes to which columns on the work sheet

  Determine the range over each alternative would be best

The probability that demand will be high is estimated to be .60, etermine the range over each alternative would be best in terms of the value of p

  Record the correct adjusting journal entry

Record the correct adjusting journal entry at the end of the month for the transaction listed. Include proper date, accounts, amounts, debit and credit.

  How much is total amount of budgeted direct labor for march

Labor Plastic costs $10 per 500 grams and employees of the company are paid $15.00 per hour. How much is total amount of budgeted direct labor for March

  Find the inventory turnover at cost

If the beginning inventory at cost was $561,900 and the ending inventory at cost was $302,300, find the inventory turnover at cost

  What would be the average waiting time of students

If SMU can reduce the average advising time to 10 minutes, what would be the average waiting time if 420 students were seen each day?

  Compute the price of the bonds based on semiannual analysis

The $1,000 par value bonds have a quoted annual interest rate of 8 percent. Compute the price of the bonds based on semiannual analysis

  Find out the element in the sample space

Obtain the sample space, assuming that balls of the same color are indistinguishable. Upon assigning equal probability to each element in the sample space, determine the probability of drawing two balls of different colors.

  Discuss the year-end accounts receivable balance

The company estimates that it will be unable to collect 5% of the year-end accounts receivable balance

  Explain disadvantages of having discretion over financial

Explain disadvantages of having discretion over financial reporting. When is discretion in financial reporting likely to lead to biased financial statements?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd