KMT Company's Average A payable is OMR 550,000 ar Purchases is OMR 1000,000 Cash purchases are 20% o purchases. In this case, the payment period of the com be: a. 250.94 days b. 200.75 days c. 154.67 days o d. 132.73 days

Q: Assume the Day sales outstanding (DSO) 36 days, Sales revenues $500,000, calculation based on 360…

A: Days sales outstanding is a financial metric that helps in determining the number of days that a…

Q: The company sells on terms 2/10, net 30.  Total sales for the year are P1,000,000, of which P100,000…

A: The average amount of account receivable is based on the customer who is paying early for grabbing…

Q: Oman chromite company LLC had sales last year of OMR 500,000, including cash sales of OMR 208,000.…

A:

Q: The company sells on terms 2/10, net 30.  Total sales for the year are P1,000,000, of which P100,000…

A: Total sales is the combination of cash sales and credit sales. Accounts receivables is the amount to…

Q: If trade Receivables Turnover is 5 ,and average Trade Receivables is 100.000 a) Other Receivables…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: Lily Corp. Corp. sells on term 2/20, net 40. Total credit sale for the year are P180,000. 40% pays…

A: Accounts receivables refer to the legal claims or money a company will get after the customer pays…

Q: What is LoGo's payables deferral period (DPO)?

A: Payables deferral period (DPO) = Accounts payable/Credit purchases per day It is the number of days…

Q: Tulips Companý has a DSO of 40 days, and its annual sales are P7,300,000. What is its accounts…

A: ANSWER 1)DSO=40 ANNUAL SALES=7300000 NUMBER OF DAYS IN A YEAR=365 DSO = (ACCOUNT RECEIVABLE/ANNUAL…

Q: A company has cash sales of $75,000, credit sales of $320,000, sales returns and allowances of…

A: Net sales = Gross sales - Sales returns and allowances - Sales discounts Gross sales includes both…

Q: The financial statements of Minnesota Mining and Manufacturing Company (3M) report net sales of…

A: Average collection period = 365/ Accounts receivable  turnover where, Accounts receivable  turnover…

Q: 10. Naronath & Co. has a.DSO of 30 days, and its annual sales are $6,500,000. What is its accounts…

A: DSO is days sales outstanding. DSO = Accounts Receivable/Sales * 365 Accounts receivable =…

Q: Assuming 77 percent of sales are on credit, what is the company's days' sales in receivables?

A: Information Provided: Net Income = $191,000 Profit Margin = 9.10% Accounts Receivable = $106,919…

Q: Abaca Company's accounts receivable is P240,000 at the beginning of the year and 280,000 at the end…

A: 1. 6× means 6 times. Accounts Receivables turnover ratio is 6               times.  2. Total Sales…

Q: ABC Corp. pays for its purchases 20 days after goods are received. On the average , goods are sold…

A: The question is related to Cash Conversion cycle. The Cash Conversion cycle is the the length of…

Q: D. P1,800,000 The QYU, Inc. has sales of P5 million per year (all credit) and an average collection…

A: The average receivable turnover ratio is calculated as net sales divided by average account…

Q: JKL Company’s sales are $1,000,000 and 80% of those sales are on credit. The beginning and ending…

A: Average Collection Period: In terms of Accounts Receivable, the average collection time of the…

Q: ABC Co. has the following information:                                                         20x1…

A: Total realized Gross profit in 20x2 = Cost of sales / ( 1 - Gross profit rate ) * Gross profit rate

Q: The following information was extracted from ABC Ltd’s financial statements for the year ended 31…

A: Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is…

Q: Cash and cash equivalents 400,000 Trade and other receivables 2,000,000 Subscription receivables…

A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…

Q: Company factored P6,000,000 of accounts receivable to a certain bank at the end of current year.…

A: Total Cost -: The Total Cost is the actual cost that occurred in the generation of a provided level…

Q: Illustration: A company sells $50,000 of goods with the terms net/30. The receivable is immediately…

A: Sales price = $50,000 Factor fee = 3% Interest = 10% reserve = 8%

Q: Al Sharif Company's Average Accounts Receivables is OMR 360,000 and total Sales is OMR 1,200,000.…

A: Credit sale=Total sale×100-Cash sale %=OMR 1,200,000×100-40%=OMR 720,000

Q: Khoury Home carried out the following operations during the 2nd quarter of the year 2020: Sales $…

A: Solution: Output VAT on sales = $250,000*11% = $27,500 Input VAT on purchases = $80,000*11% = $8,800

Q: XYZ Company's Average Accounts payable is OMR 240,000 and total Purchases is OMR 700,000. The Cash…

A: The average payment days are the number of days taken by the company to pay off its creditors.

Q: NG has the following financial data as of December 31, 2019: Gross sales = P250,000.00 Sales…

A: Accounts receivable turnover ratio is calculated by dividing  days in a year by average collection…

Q: pliers. It

A: (1) Following are the key factor which determines the level of investment in current asset. Type of…

Q: McDowell Industries sells on terms of 3/10, net 30. All sales for the year are on credit amount to…

A: a) Computation of trade credit who do not take the discount and pay in 40 days is as follows:Nominal…

Q: ABC Industries has accounts receivable of $700, inventory of $1,200, sales of $4,200, and cost of…

A: Ratio is a tool which is used to measure the growth and performance of the firm by establishing the…

Q: PROBLEMS Bacolod Supermart made cash sales of P3,000,000 and credit sales of P8,000,000. Out of the…

A: The accrual profit is the profit calculated on the basis of revenue earned and expenses incurred…

Q: McDowell Industries sells on terms of 3/10, net 30. All sales for the year are on credit amount to…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: The annual sales of a company are $47,000 including sales tax at 17.5%. Half of the sales are on…

A: We have the following information: Annual sales of the company: $47,000 Half of the sales are on…

Q: Calulate Current Ratio from the following information: Particulars Inventories Trade receivables Rs.…

A: The formula to compute the current ratio is: Current Ratio = Current AssetsCurrent Liabilities

Q: nider Industries sells on terms of 2/10, net 25. Total sales for the year are $600,000. Thirty…

A: Days Sales Outstanding means the number of days taken by the firm to collect the payment from their…

Q: On Dec 31, the company has $30.000 on hand; Cash($) account has a balance of 45.000 TL and exchange…

A: Foreign exchange rate is the value of one currency in the terms of other currency. Foreign exchange…

Q: XYZ Company's Average Accounts payable is OMR 240,000 and total Purchases is OMR 700,000. The Cash…

A: Credit purchase = total purchase x (1 - cash purchase) = 700000 x (1-0.30) = OMR 490,000

Q: Collinsworth Co. reported sales on an accrual basis of$100,000. If accounts receivable increased…

A:

Q: International Industries sells on terms of 3/10, net 50. Gross sales last year were 5,662,500 and…

A: Given information: Credit terms 3/10, net 50 Last year gross sales amounted to $5,662,500 Average…

Q: The following information is an extract of the statement of profit or loss of Palladium Ltd for the…

A: Cash Sale=Rate×Annual Sales=20%×$625,000=$125,000 Credit Sale=Annual Sales-Cash…

Q: Average daily sales of Chase Pumping Goods are Rs. 100,000. Average accounts receivable of Chase has…

A: Cash conversion cycle is the time period that is used by the company to convert its resources into…

Q: 10. Naronath & Co. has a DSO of 30 days, and its annual sales are $6,500,000. What is its accounts…

A: DSO = (average accounts receivable/total credit sales) * no. of days

Q: Cash and cash equivalents 400,000 Trade and other receivables 2,000,000 Subscription receivables…

A: SOLUTION- CURRENT LIABILITIES REPRESENTS THAT AMOUNT DUE TO NE PAID TO CREDITORS WITH IN TWELVE…

Q: DJ Company's net accounts receivable were P250,000 as of December 31, 2019, and P300,000 as of…

A: Formula: Accounts receivable turnover = Net credit sales / Average accounts receivable Average…

Q: The following information was extracted from ABC Ltd’s financial statements for the year ended 31…

A: Cash forcasting is a plan that shows flow of cash in and out of organisation. It shows the future…

Q: Compute for the cash conversion cycle.

A: Cash conversion cycle refers to the time period taken a business entity in order to convert its…

Q: Company has annual cash sales of Rs. 80,00,000. The credit sales are 80% is total sales). The…

A:

Q: The following information relates to ELEPHANT INC. for the year ended 2020 Cash purchases - gross…

A: Solution: Credit purchases = Cash payments on payable - Decrease in trade accounts payable -…

Q: XYZ's receivables turnover is 4x. The accounts receivable at year-end are $600,000. The average…

A: Receivable turnover ratio is calculated as follows: = Net credit sales / Average account receivable

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.