Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
For several firms trade payables - suppliers of goods and services - represent the major component of current liabilities the amounts owed by the company which have to be repaid within the next accounting period. Together with inventory and receivables - current liabilities current assets - cash, determine the firm's net working capital position example the net sum it invests in working capital.
Different suppliers will work different credit periods but the average trade credit period in days can be calculated as follows
Trade payables/Credit purchases × 365
Occasionally it is expressed in terms of total purchases and sometimes in terms of overall cost of sales. The length of the trade credit period depends partially on competitive relationships among suppliers and partly on the firm's own working capital policy.
The trade credit period is an significant element in a company's cash conversion cycle - the length of time between a firm making payment for its purchases of materials and labour and receiving payment for its sales. The time period above which net current assets have to be financed depends not only on policy towards suppliers but also on receivables management and inventory control policy
Cash conversion cycle = [Receivables days + inventory period] - [trade credit period]
What is accounting? Accounting is concerned with analysing, collecting as well as communicating financial information. Purpose is to help people who use this info to make more
you are aceo of acme ,inc located in united states .you use the discounted pay back period method and accept all projects that pay back in hree years.a project that will cost 5,500
Suppose you get a cash bonus of Rs.1, 00,000 that you deposit in a bank that pays 10 % annual interest. How much can you withdraw yearly for a period of 10 years? Solution :
Classifying expenses by nature Under this format, expenses are not classified by their nature i.e. referred to specifically according to their type and the major categories of ex
I have this assignment. Is there a cost associated for help?
Robin Corporation accepted credit cards for $34,200 of services performed in October 2011.The credit card company charged a 3% service fee and paid Robin as soon as it received the
Beginning balance 24,000 cash Sales 250,000 Gross profit 45% of sales Accounts receivable increase by 24,000 Accounts payable increased by 51,000 Inventory increased by 98,000 Sell
On January 1, 2010, Anderson Corporation had 60,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 Issued
Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investm
how to do it in samply form?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd