+1-415-670-9189
info@expertsmind.com
Cost of trade credit-cash conversion cycle
Course:- Managerial Accounting
Reference No.:- EM1350353




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Managerial Accounting

Cost of Trade Credit

Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume payment is made either on the due date or on the discount date.

A. 1/15, net 20.
B. 2/10, net 60.
C. 3/10, net 45
D. 2/10, net 45
E. 2/15, net 40

Cash Conversion Cycle
The Zocco Corporation has an inventory conversion period of 75 days, a receivables collection period of 38 days, and a payable deferral period of 30 days.

A. What is the length of the firm's cash conversion cycle?

B. If Zocco's annual sales are $3,421,875 and all sales are on credit, what is the firm's investment in accounts receivable?

C. How many times per year does Zocco turn over its inventory?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Managerial Accounting) Materials
Rearrange the preceding income statement to the contribution margin format. Calculate operating income if sales volume increases by 8%. Calculate the amount of revenue requi
Allocation of any underapplied or overapplied overhead for the month is closest to - cost of goods sold at the end of the month on the basis of the overhead applied du
ACC200 - A brief description of the purpose of a product costing system and why it is necessary. Include comments on AASB102 in relation to production costs and refer to the
Polaris reports in notes to its financial statements that, in addition to its products sold, it includes the following costs (among others) in cost of sales: customer shipping
In manufacturing environment, which cost are direct and which are indirect in product costing? What is the objective of allocating indirect manufacturing overhead cost of prod
Explain how management of Firemaster could manipulate earnings in 2012 by producing more units than are actually needed to meet demand. Could this approach to earnings managem
MS6010- What can you learn from the financial statements of competitors that determine the relative cost position of your company? What are some of ways in which you can secur
During the current year merchandise is sold for $2,450,000. The cost of the merchandise sold is $1,519,000. What is the amount of the gross? Compute the gross profit percentag