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Nguyen Khanh Son -Chapter 16 problems and chapter 17

# Nguyen Khanh Son -Chapter 16 problems and chapter 17 -...

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Name :Nguyen Khanh Son Class: Batch 2 Chapter 16 16-1 Inventory conversion period = (Inventory/ cost of goods sold) x 365 = 2 x 365/ (15x 0.8)= 61 days Average collection period = Receivables x365/ sales = 3 x 365/ 15 = 73 days Payables deferral period = Payables x 365/ cost of goods sold = 1 x 365/ (15x 0.8 = 31days CCC= 61 + 73 – 31 = 103 days Sales = 15 Inventory= 1.8 Account receivable= 2.7 Account payable = 1.1 Inventory conversion period = (Inventory/ cost of goods sold) x 365 = 55 days Average collection period = Receivables x365/ sales= 2.7 x 365/ 15 = 65days Payables deferral period = Payables x 365/ cost of goods sold= 1.1 x 365 / (15 x 0.8) = 33 days 16-2 DSO = days sales outstanding = receivables / Average sales per day = 2000 x 365 / 10000= 73 days Account receivable = sales per day x legth of collection period = 10,000,000 x 30 /365 = 821,917.80 If lamar could take action that led to on-time payments, so capital will be \$1178.082

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16-4 a) CCC= Inventory conversion period + average collection period – payables deferral = 75 +38 -30= 83 days b) Accounts receivables = Sales per day x length of collection period = 3,421.875/365 x 38 = 356.25

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