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100038050_HW15

100038050_HW15 - Problem 5 a Q1 Beginning receivables Sales...

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Problem 5 a) Q1 Q2 Q3 Q4 Beginning receivables \$300 \$400 \$380 \$470 Sales 800 760 940 870 Cash collections -700 -780 -850 -905 Ending receivables \$400 \$380 \$470 \$435 b) Q1 Q2 Q3 Q4 Beginning receivables \$300 \$533 \$507 \$627 Sales 800 760 940 870 Cash collections -567 -787 -820 -917 Ending receivables \$533 \$506 \$627 \$580 c) Q1 Q2 Q3 Q4 Beginning receivables \$300 \$267 \$253 \$313 Sales 800 760 940 870 Cash collections -833 -773 -880 -893 Ending receivables \$267 \$254 \$313 \$290 Problem 6 The inventory turnover and inventory period are: Inventory turnover = COGS/Average inventory Inventory turnover = \$52,827/{[\$8,413 + 10,158]/2} Inventory turnover = 5.6892 times Inventory period = 365 days/Inventory turnover Inventory period = 365 days/5.6892 Inventory period = 64.16 days The receivables turnover and receivables period are: Receivables turnover = Credit sales/Average receivables Receivables turnover = \$67,312/{[\$5,108 + 5,439]/2} Receivables turnover = 12.7642 times Receivables period = 365 days/Receivables turnover Receivables period = 365 days/12.7642 Receivables period = 28.60 days The operating cycle is: Operating cycle = 64.16 days + 28.60 days Operating cycle = 92.75 days

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100038050_HW15 - Problem 5 a Q1 Beginning receivables Sales...

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