What is the firm inventory conversion period

Reference no: EM131931447

Question: ABC, Inc. has been experiencing cash shortages due to its high growth rate. Using the following information, what is the firm's Inventory Conversion Period? (Round to one decimal place.)

Average inventory = $ 75,000

Annual sales = $600,000

Annual cost of goods sold = $360,000

Average accounts receivable = $160,000

Average accounts payable = $ 25,000

Reference no: EM131931447

Questions Cloud

What risk-adjusted discount rate must be used : ABC Mining is evaluating the introduction of a new ore production process. Two alter?natives are available. Production Process A has an initial cost of $25,000.

Discuss the rationale for moving diagnosis of pathological : Explain the similarities and differences between addiction to chemical substances and addiction to gambling. Discuss the rationale for moving the diagnosis

How many of each product should be produced and sold : How many of each product should be produced and sold to maximize profits given the constraint in lathe hours?

Create a new or choose an existing health policy : Create a new or choose an existing health policy which addresses an important health issue, excluding policies on seat belts, smoking or helmets

What is the firm inventory conversion period : ABC, Inc. has been experiencing cash shortages due to its high growth rate. Using the following information, what is the firm's Inventory Conversion Period?

Analyze how the vision of the company is developed : Leaders held meetings with all staff to discuss the relevance to each of them. ? Posters were prepared with high visibility throughout the facilities.

What ways do you need more support from family and friends : In what ways do you need more support from family and friends? What tips do you have for asking for help?

Computing total asset turnover ratio : ABC's return on equity (net income / shareholders equity) was very poor last year, but management has come up with a plan to improve things.

Prepare a budgeted multiple-step income statement : North Company has completed all of its operating budgets. Prepare a budgeted multiple-step income statement for the year ending December 31, 2017.

User Account

All Pages