In: Finance

# Sigma Limited has sales of $100 million, cost of goods sold of$60 million, assets of...

Sigma Limited has sales of $100 million, cost of goods sold of$60 million, assets of $120 million, accounts receivables of$20 million and inventory of $30 million. Calculate days' sales in receivables ratio. ## Solutions ##### Expert Solution Solution: (a) When the no. of days in a year is taken as 360 days The formula for calculating the days’ sales in receivables ratio is = ( Accounts receivable / Sales ) * 360 As per the information given in the question we have Accounts receivable =$ 20 million   ;   Sales = $100 million Applying the above information in the formula we have = ($ 20 million / $100 million ) * 360 = 0.20 * 360 = 72 days Thus the days’ sales in receivables ratio = 72 days ( When a year = 360 days is used ) (b) When the no. of days in a year is taken as 365 days The formula for calculating the days’ sales in receivables ratio is = ( Accounts receivable / Sales ) * 365 As per the information given in the question we have Accounts receivable =$ 20 million   ;   Sales = $100 million Applying the above information in the formula we have = ($ 20 million / $100 million ) * 365 = 0.20 * 365 = 73 days Thus the days’ sales in receivables ratio = 73 days ( When a year = 365 days is used ) ## Related Solutions ##### The following company has sales of$30 million and a cost of goods sold of $18... The following company has sales of$30 million and a cost of goods sold of $18 million. The balance sheet for period ending 31 December 2018 for this company appears below Assets$000 Liabilities and Shareholder Equity      $000 Cash 2500 Accounts Payable 1600 Accounts Receivable 4400 Other Payables 900 Inventory 1500 Accruals 1100 Total Current Assets 8400 Total Current Liabilities 3600 Property Plant and Equipment 10500 Long Term Debt 2500 Total Assets 18900 Total Liabilities 6100 Issued Equity 12800 Total... ##### A small business has sales of$2 million, cost of goods sold of $12 million, net... A small business has sales of$2 million, cost of goods sold of $12 million, net profit of$34,500,net fixed assets of $200,000, and total asset turnover of 5.25. What is the value of current assets? ##### Question 8: The following company has sales of$30 million and a cost of goods sold...
Question 8: The following company has sales of $30 million and a cost of goods sold of$18 million. The balance sheet for period ending 31 December 2019 for this company appears below: Assets                                                      $000 Liabilities and Shareholder Equity$000 Cash                                                         2500   Accounts Payable                                    1600 Accounts Receivable                             4400 Other Payables                                           900 Inventory                                                1500 Accruals                                                      1100 Total Current Assets                            8400 Total Current Liabilities                          3600 Property Plant and Equipment         10500 Long Term Debt                                        2500 Total Assets                                         18900 Total Liabilities                                         6100 Issued Equity               ...
Extotech has sales of $50 million, cost of goods sold for the same period of$15 million, and average inventory of $250,000. What is Exotech’s inventory turnover? a. 200 b. 20 c. 60 d. 150 An inventory turn ratio of 25 means a company’s average quantity of goods in inventory sold within how many days? a. 5.2 b. 25 c.... ##### Question 8: The following company has sales of$30 million and a cost of goods sold...
Question 8: The following company has sales of $30 million and a cost of goods sold of$18 million. The balance sheet for period ending 31 December 2019 for this company appears below: Assets                                                      $000 Liabilities and Shareholder Equity$000 Cash                                                         2500   Accounts Payable                                    1600 Accounts Receivable                             4400 Other Payables                                           900 Inventory                                                1500 Accruals                                                      1100 Total Current Assets                            8400 Total Current Liabilities                          3600 Property Plant and Equipment         10500 Long Term Debt                                        2500 Total Assets                                         18900 Total Liabilities                                         6100 Issued Equity               ...
##### The Greek Connection had sales of $29.9 million and a cost of goods sold of... The Greek Connection had sales of$ 29.9 million and a cost of goods sold of $12.0 million in 2013. A simplified balance sheet for the firm appears? below: a. Calculate The Greek? Connection's net working capital in 2013. b. Calculate the cash conversion cycle of The Greek Connection in 2013. c. The industry average accounts receivable days is 30 days. What would have been the cash conversion cycle for The Greek Connection in 2013 had it met the... ##### 4) Assume that revenue is$180 million, cost of goods sold is $50 million, total assets... 4) Assume that revenue is$180 million, cost of goods sold is $50 million, total assets are$800 million and inventories are $80million. On the common size statements, inventories would have an approximate value of ___ and cost of goods sold would have an approximate value of ___ ##### Dickson City Company has annual sales of$5 million, while the cost of goods sold is...
Dickson City Company has annual sales of $5 million, while the cost of goods sold is$3.2 million. All sales are made on a cash basis. The owner of Dickson has come up with the plan of giving credit to the customers. He believes that this will increase the sales by 25% without increasing any of the fixed costs. He thinks that 20% of the customers will pay within 30 days, 40% within 60 days, 37% within 90 days, and...
##### A company reports sales revenue of $314 million, cost of goods sold of$187 million, selling...
A company reports sales revenue of $314 million, cost of goods sold of$187 million, selling and administrative expenses of $77 million, depreciation of$20 million, and interest expense of \$5 million. What is the company's after-tax operating income (to one decimal place) if the corporate tax rate is 30%?