# Project #67182 - Homework

Question 1

1. Consider the following financial statement information for the Zacee Corporation for 2013:
 Items Beginning Ending Inventory \$7,708 \$7,866 Accounts Receivable (A/R) \$87,309 \$92,819 Accounts Payable (A/P) \$19,531 \$20,035 Credit Sales \$144,077 Cost of Goods Sold (COGS) \$126,215
2. a. Compute the annual average of the inventory, accounts receivable, and accounts payable.
3. b. Compute the inventory turnover, accounts receivable turnover, and accounts payable turnover.
4. c. Compute the inventory period, accounts receivable period, and accounts payable period.
5. d. Calculate the operating cycle.
6. e. Calculate the cash cycle.
7. f. Interpret the cash cycle.

Question 2

1. Zucha Corporation has an inventory period of 55 days, an accounts receivable (A/R) period of 6 days, and an accounts payable (A/P) period of 3 days. The company’s annual sales is \$182,795. Answer following questions.

a.  What is the length of the operating cycle?

b.  What is the length of the cash cycle?

c.  How many times per year does the company turn over its accounts receivable?

d.  If the company’s annual sales are on credit, what is the investment in accounts receivable?

e.  How many times per year does the company turn over its inventory?

f.  If the company’s cost of goods sold (COGS) is 60 percent of the annual sales, what is its average inventory?

 Subject Business Due By (Pacific Time) 04/24/2015 10:00 am
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