How long is its average collection period

Assignment Help Accounting Basics
Reference no: EM132861278

Questions -

Thompson Paint Company uses 60,000 gallons of pigment per year. The cost of ordering pigment is $200 per order, and the cost of carrying the pigment in inventory is $1 per gallon per year. The firm uses pigment at a constant rate every day throughout the year. Calculate the EOQ.

Assuming that it takes 20 days to receive an order once it has been placed, determine the reorder point in terms of gallons of pigment. (Note: Use a 365-day year)

ABC Industries has a 120-day operating cycle. If its average age of inventory is 50 days, how long is its average collection period? If its average payment period is 30 days, what is its cash conversion cycle? Place all of this information on a time line.

Reference no: EM132861278

Questions Cloud

Discuss the relevance of statement for organizations growing : Discuss the relevance of this statement for organizations growing and responding to change. What responsibility
Unique strategic challenges that christian universities face : What are some of the unique strategic challenges that Christian universities face? How has the unprecedented Covid-19 pandemic crisis impacted your life?
State how plan to minimize the impact of the weakness : Identify and describe at least three threats to the agency, organization, or community. State how you plan to minimize the impact of the weakness.
How might plan to work with competitors to meet the needs : How might plan to work with competitors to meet the needs of your targeted agency, organization, or community. how you would minimize the impact of condition
How long is its average collection period : ABC Industries has a 120-day operating cycle. If its average age of inventory is 50 days, how long is its average collection period
Thomas green-power-office politics and a career in crisis : Discuss the differences in work styles, personalities, and expectations of Green and Davis.
Traditional and preventive approaches to health care : What are the differences between traditional and preventive approaches to health care, and how does proper nutrition fit into either approach?
Describe plans for conducting an environmental scan : Describe plans for conducting an environmental scan. The environmental scan is a process in which stakeholders gather and interpret relevant data on an agency
How is a swott and service gap model associated : How is a SWOTT and service gap model associated

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.

  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!

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