User Account

All Pages

Determine the length of the inventory conversion period

Assignment Help Accounting Basics
Reference no: EM13849595

The Garcia Industries balance sheet and income statement for the year ended 2010 are as follows: Balance Sheet ( in Millions of Dollars) Assets Liabilities and Stockholders? Equity Cash $ 6.0 Accounts payable $ 10.0 Accounts receivable 14.0 Salaries, benefits, and payroll taxes payable 2.0 Inventories* 12.0 Other current liabilities 10.0 Fixed assets, net 40.0 Long- term debt 12.0 $ 72.0 Stockholders? equity 38.0 $ 72.0 * The average inventory over the past two years also equals $ 12.0 million. Income Statement ( in Millions of Dollars) Net sales $ 100.0 Cost of sales 60.0 Selling, general, and administrative expenses 20.0 Other expenses 15.0 Earnings after tax $ 5.0

a. Determine the length of the inventory conversion period.

b. Determine the length of the receivables conversion period.

c. Determine the length of the operating cycle.

d. Determine the length of the payables deferral period.

e. Determine the length of the cash conversion cycle.

f. What is the meaning of the number you calculated in part e?

Reference no: EM13849595

Questions Cloud

Discuss the major steps of the genetic algorithm : Discuss the major steps of the genetic algorithms. Based on your experience and your textbook reading, what are suitable problem areas for the application of genetic algorithms?
Strategic planning for competitive advantage : Strategic Planning for Competitive Advantage
Completion of a research paper : One of the requirements for this course is the completion of a research paper in Unit VIII. A research paper is distinguishable from a report by the inclusion of an original thesis.
Which organization will attempt to resolve the dispute : Assume China and the United States are involved in a trade dispute. Which organization will attempt to resolve the dispute
Determine the length of the inventory conversion period : Determine the length of the inventory conversion period. Determine the length of the receivables conversion period. Determine the length of the operating cycle.
Why the auto industry is considered a monopoly : Six firms - GM, Ford, Chrysler, Toyota, Honda, and Nissan - share 90 percent of U.S. auto sales. This is one of the reasons why the auto industry is considered a monopoly
Examine potential results of measuring the fair market value : Examine the potential results of measuring the fair market value of the equity-based compensation at the grant date on financial statements under GAAP only.
Short term relationships with customers and suppliers : In the relationship era, firms focus on: long term relationships with customers and suppliers. short term relationships with customers and suppliers
Estimate the least square regression lines : Estimate the least square regression lines and explain the meaning of the y-intercept - Hypothesis that the population average

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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