Please help? Thank! Problems (10 Points): 6. Use the following information for t
ID: 2801233 • Letter: P
Question
Please help? Thank! Problems (10 Points): 6. Use the following information for the XYZ company to answer the questions: Beginning = 400,000 ,000 Inventory: Accounts Receivable: Beginning - 320 Accounts Payable: Beginning = 150,000 Net sales = 2,300,000 Cost of Goods sold = 1,640,000 Ending = 600,000 Ending = 400,000 Endu g = 200,000 a) What is the inventory period for this firm? b) What is the receivables period for this firm? c) What is the payables period for this firm? d) What is the cash cycle for this firm?Explanation / Answer
a)
inventory period=365/(1640000/((400000+600000)/2))=111.28 days
b)
receivables period=365/(2300000/((400000+320000)/2))=57.13 days
c)
payables period=365/(1640000/((200000+150000)/2))=38.95 days
d)
cash days=111.28+57.13-38.95=129.46 days
the above is answer