Problem 8 OPERATING AND CASH CONVERSION CYCLES. Consider the following selected financial data for the Cloud 9 Retailer: Ending Item Beginning $7,000 Inventory $5.000 2.400 Accounts receivable 1.600 Accounts payable 4,800 2.700 Net credit sales $50.000 Cost of goods sold 30.000 Requirement: Calculate the operating and cash conversion cycles.

Problem 8 OPERATING AND CASH CONVERSION CYCLES. Consider the following selected financial data for the Cloud 9 Retailer: Ending Item Beginning $7,000 Inventory $5.000 2.400 Accounts receivable 1.600 Accounts payable 4,800 2.700 Net credit sales $50.000 Cost of goods sold 30.000 Requirement: Calculate the operating and cash conversion cycles.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 7SEB: JOURNALIZING SALES RETURNS AND ALLOWANCES Enter the following transactions starting on page 60 of a...

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b Preview File Edit View Go Tools Window Help mgt120h-a17.pdf Page 5 of 10 15. The retailer considers VISA and MasterCard sales as a. Cash sales. b. Promissory notes. c. Credit sales. d. Contingent sales. Cost-Volume-Profit Analysis 40 14. Receivables might be sold to a. Lengthen the cash-to-cash operating cycle. b. Take advantage of deep discounts on the cash realizable value of receivables. c. Generate cash quickly. d. Finance companies at an amount greater than cash realizable value. The Effect Of Prepaid Taxes On Assets And Liabili... O Debenture Valuation CC 7 D ↑ V Search (Cª Ơ Sat Apr 15 3:05 PM 13. Goodwill can be recorded When customers keep returning because they b. When the company ang because they are satisfied with the company's products. d. Only when there is an exchange transaction involving the purchase of an entire business. c. When the company has exceptional mor business 400-0 -0 =1 Page 4 of 11
engageNOWv2 | Online teachir X * CengageNOWv2| Online teachir x .com/ilrm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogre. * A eBook Show Me How Accounts Receivable Analysis A company reports the following: Sales $671,600 Average accounts receivable (net) 67,160 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables days Previous Next Check My Work 11:16 AM 67°F Sunny A O E D a ) 12/3/2021 n sc hone backsoce
8.2 Exercises Name Date Directions Solve the following problems. Write your answers in the blanks provided. Place commas and dollar signs in answers as needed. A. Find the cash discount amount and the net amount due on these invoices. Assume each invoice is paid within the discount period. Round your answers to the nearest cent. OBJECTIVES 2, 3 Invoice Amount Terms Cash Discount Net Amount Due $623.50 2/10, n/30 1. 2. $4,635.65 3/10, n/60 3. 4. $6,250.81 1/15, n/45 5. 6. B. Determine the cash discount and net amount due on these invoices. Round OBJECTIVES 4, 5 your answers to the nearest cent. Paid Within Invoice Net Discount Returned Shipping Charges Amount Cash Amount Terms Period Merchandise Discount Due $534.78 2/10, n/45 yes none $13.25 7. 8. $638.00 1/10, n/30 $33.50 yes none 9. 10. $213.72 2/10, n/30 $15.50 no none 11. 12. C. Determine the credit given for partial payment, balance due, and cash discount on these invoices. OBJECTIVE 6 Invoice Partial Credit Balance Cash Amount…
A v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker%3&takeAssignmentSessionLo... Assignment 6d: Chapter 22 Exercises eBook Print Item Schedule of Cash Collections of Accounts Receivable Office World Inc. has "cash and carry" customers and credit customers. Office World estimates that 20% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $106,000 November 133,000 December 194,000 The Accounts Receivable balance on September 30 was $71,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar. Office World Inc. Schedule of Collections from Sales For the Three Months Ending December 31 October November December Receipts from cash…
geNOWv21 Online teachir X keAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator assignment-take&inprogress-false eBook 4 Show Me How Calculator Sales-Related Transactions, Including the Use of Credit Cards Journalize the entries for the following transactions: (If an amount box does not require an entry, leave it blank.) a. Sold merchandise for cash, $25,000. The cost of the gods sold was $17,500, (Record the sale first.) Cash 5. 50ld merchandise on account, S99,000. The cost of the goods sold was $58,800, (Record the sale first.) c. Sold m erchandise.to customers. who used MasterCard and VISA, S475,000. The cost of the goods sold was $280,000. (Record the sale first.) 9:33
Important Note! Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period a. b. Merchandise (gross) $ S C. $ d. $ 7,800 24,200 80.600 17,000 Terms 2/10, n/60 1/15, n/90 1/10, n/30 3/15, n/45 Payment
JOURNALIZING SALES RETURNS AND ALLOWANCES Enter the following transactions starting on page 60 of a general journal and post them to the appropriate general ledger and accounts receivable ledger accounts. Use account numbers as shown in the chapter. Beginning balance in Accounts Receivable is 3,900. Beginning balances in selected customer accounts are Adams, 850; Greene, 428; and Phillips, 1,018.
Accounts Receivable Turnover and Number of Days Sales in Receivables Analyze and compare Amazon.com to Best Buy Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Best Buy, Inc. (BBY) is a leading retailer of consumer electronics and media products in the United States. Amazon and Best Buy compete in similar markets; however, Best Buy sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. Sales and accounts receivable information for both companies for a recent period follows (in millions): Amazon Best Buy Sales 135,987 39,528 Accounts receivable: Beginning of year 5,654 1,280 End of year 8,339 1,162 a.Determine the accounts receivable turnover for each company. Round all calculations to one decimal place. b.Determine the number of days sales in receivables for each company. Round all calculations to one decimal place. c. Evaluate the relative efficiency in collecting accounts receivables between the two companies. d. What might explain this difference?
Create at least 3 transactions in one month for each specialized journalsi. Sales Journalii. Purchase journaliii. Return inwards journaliv. Return outward journalsv. Cash receipts journalsvi. Cash payment journalvii. General journal
Current Attempt in Progress The Accounts Receivable account has a beginning balance of $48900 and an ending balance of $69600. If total sales on account were $39500 for the year, what were the total collections on account? $69600 O $79000 O $18800 O $60200 Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air DII DD 000
Cash Discount and Remittance calculations For each of the following May Paz Abad Retailers purchases, assume that credit terms are 2/10, n/30 and that any credit memorandum was issued and known before Mary Paz Abad Retailers made the payments. Prepaid Purchases Shipping Terms Freight Credit a P 12,000 FOB shipping point (by seller) Memo b. 24,000 FOB destination P 1,000 P 3,000 c. 28,000 FOB shipping point 2,400 2,000 d. 40,000 FOB shipping point 4,000 Required: 1. Determine the cash discount available. 2. Determine the cash remitted if the payment is made within the discount period.
Activity 3. Comprehensive Problems. Solve the following problems below. Present your solutions in good format. For the next seven (6) items, use the information below: Debit Credit Account Title Sales 875,000 Sales Returns and Allowances Sales Discounts Purchases 12,000 10,000 295,000 Purchases Returns and Allowances 14,000 Freight in Merchandise Inventory, 1/1/2020 36,000 46,000 20,000 75,000 125,000 15,000 Merchandise Inventory, 12/31/2020 Freight Out Office Salaries Commission Expense 1. Net purchases for the period were 2. Cost of goods available for sale for the period were 3. Cost of goods sold for the period were 4. Net sales for the period 5. Gross profit for the period were 6. The Profit or Loss for the period. 7. The following data pertain to the two year operation of Despacito business: Year 1 P200,000 250,000 90,000 Despacito's gross profit for year 1 and year 2 is? Year 2 Sales P250,000 150,000 40,000 Purchases Ending inventory 8. The cost of sale is P250,000. Total…