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SQB Corporation reports sales of $10,000,000 for Year 2, with a gross profit margin of 40%. 20% of SQB's sales are on credit.
Year 1
Year 2
Accounts receivable
$ 150,000
$ 170,000
Inventory
900,000
1,000,000
Accounts payable
1,100,000
1,200,000
Requirements:
1. Accounts receivable days outstanding at the end of Year 2 is (use year-end receivable balance and 360 days in a year):
2. Accounts payable days outstanding at the end of Year 2 is (use average accounts payable for the year and 360 days in a year):
3. Days' sales in inventory at the end of Year 2 is (use year-end inventory amount and 360 days in a year)
3. Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0
audit procedurees
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