Quiz – Calculating the Inventory Period
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
Determine the average number of days it takes for Pablano’s to sell its inventory.
Determine the average number of days it takes for Pablano’s to sell its inventory.
Calculate the amount Candy Supplies will pay its suppliers in the third quarter, given the estimated quarterly sales for next year, starting with Quarter 1, and assuming that Candy Supplies purchases are equal to a percent of the following quarter’s sales.
Determine the average accounts payable balance for Corner Store Industries using the given information on sales, cost of goods sold, profit margin, and accounts payable period.
Determine the projected amount of disbursements for the month of September for D’s Hardware, based on the given information about sales, other expenses, interest, and taxes.
Determine the average number of days it takes for DA West to pay its suppliers.
Calculate the average collection period for The HOT Truck, a company that operates specialty vehicles providing hot food and beverages for firms in outlying regions. The company has annual sales, a cost of goods sold, and a profit margin. Additionally, the average accounts receivable balance is given. Determine how long it takes for this food truck to collect payment for its services on average.
Calculate the amount collected by Kelso’s in the month of February, using the given projected sales for January through April, the collection percentages for each month, and the initial accounts receivable balance.
Calculate the new operating and cash cycles of Metropolitan Realty if it takes advantage of a supplier’s discount offer.
Calculate the effective annual interest rate on a line of credit based on the given interest rate per month and the requirement for a non-interest-bearing deposit.
Determine Diva Donuts’ total disbursements for the month of June, considering their purchasing pattern, accounts payable period, and payment timing. Use the provided sales, other expenses, and interest/tax figures for May, June, and July.