Question
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 )
jeff jeffy answered 2 years agoRelated 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...
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 United Colours Corporation has $20 million in Sales, and its cost of goods sold is...
The United Colours Corporation has $20 million in Sales, and its
cost of goods sold is $15 million. The average inventory balance
for the company is $10 million. In order to meet the industry
average of 80 days, how would the firm have to change its
investment in INVENTORY?
Select one:
a. Decrease by $7.95 million
b. Decrease by $2.05 million
c. Increase by $2.05 million
d. Increase by $7.95 million
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%?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- function X=extractDWT(x_train,startS,endS,wStep,wRange) % x_train = input signal % startS = from second % endS = end...
- Do you agree that Social Loafing is similar to Theory X. Give an example to support...
- Computing Cost of Goods Sold and Ending Inventory. Bartov Corporation reports the following beginning inventory and...
- SQL FORMAT (11-13 are completed and correct) -- 11. what are the names of all students...
- You have been hired as a capital budgeting analyst by Advent Sports, a sporting goods firm...
- DESCRIBE WHAT HAPPENS WHEN WE BECOME CONSCIOUS OF SOMETHING. WHAT HAS TO HAPPEN FOR CONSCIOUS AWARENESS...
- 3) You are rolling a 12 sided die 8 times. a) What is the size for...
ADVERTISEMENT