Question 1: Central Manufacturing
Days of payable = 65 days
Days of receivables = 84 days
Days of inventory = 29 days
Days of cash to cash = 48 days
Question 2: Alku
Days of payable = 73 days
Days of receivables = 65 days
Days of inventory = 49 days
Days of cash to cash = 41 days
Question 3: Mazmenininkas
Days of payable = 84 days
Days of receivables = 34 days
Days of inventory = 15 days
Days of cash to cash = -35 days
Kindly see solutions below. Thank you!
Explanation:
Question 1: Central Manufacturing
STEP 1: Compute for the days of payable
Days of payable = (Accounts payable x 365 days) / Cost of goods sold
Days of payable = ($9,679 x 365) /
Days of payable = $3,531,740 / $54,209
Days of payable = 65.15 or 65 days
STEP 2: Compute for the days of receivable
Days of receivables = (Accounts receivables x 365 days) / Sales
Days of receivables = ($23,993 x 365) / $104,507
Days of receivables = $8,757,445 / $104,507
Days of receivables = 83.80 or 84 days
STEP 3: Compute for the days of inventory
Days of inventory = (Inventory x 365 days) / Cost of goods sold
Days of inventory = ($4,287 x 365) / $54,209
Days of inventory = $1,564,755 / $54,209
Days of inventory = 28.87 or 29 days
STEP 4: You can now compute for the days of cash to cash
Days of cash to cash = days of inventory + days of receivable – days of payable
Days of cash to cash = 29 days + 84 days – 65 days
Days of cash to cash = 48 days
Question 2: Alku
STEP 1: Compute for the days of payable
Days of payable = (Accounts payable x 365 days) / Cost of goods sold
Days of payable = ($6,495 x 365) / $32,525
Days of payable = $2,370,675 / $32,525
Days of payable = 72.89 or 73 days
STEP 2: Compute for the days of receivable
Days of receivables = (Accounts receivables x 365 days) / Sales
Days of receivables = ($11,196 x 365) / $62,704
Days of receivables = $4,086,540 / $62,704
Days of receivables = 65.17 or 65 days
STEP 3: Compute for the days of inventory
Days of inventory = (Inventory x 365 days) / Cost of goods sold
Days of inventory = ($4,273 x 365) / $32,525
Days of inventory = $1,559,645 / $32,525
Days of inventory = 49.06 or 49 days
STEP 4: You can now compute for the days of cash to cash
Days of cash to cash = days of inventory + days of receivable – days of payable
Days of cash to cash = 49 days + 65 days – 73 days
Days of cash to cash = 41 days
Question 3: Mazmenininkas
STEP 1: Compute for the days of payable
Days of payable = (Accounts payable x 365 days) / Cost of goods sold
Days of payable = ($37,337 x 365) / $162,627
Days of payable = $13,628,005 / $162,627
Days of payable = 83.80 or 84 days
STEP 2: Compute for the days of receivable
Days of receivables = (Accounts receivables x 365 days) / Sales
Days of receivables = ($28,979 x 365) / $313,521
Days of receivables = $10,577,335 / $313,521
Days of receivables = 33.74 or 34 days
STEP 3: Compute for the days of inventory
Days of inventory = (Inventory x 365 days) / Cost of goods sold
Days of inventory = ($6,861 x 365) / $162,627
Days of inventory = $2,504,265 / $162,627
Days of inventory = 15.40 or 15 days
STEP 4: You can now compute for the days of cash to cash
Days of cash to cash = days of inventory + days of receivable – days of payable
Days of cash to cash = 15 days + 34 days – 84 days
Days of cash to cash = -35 days