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Home / Questions / The balance sheet and income statement for Barboursville Bassoon Company (BBC) as of Decem...

The balance sheet and income statement for Barboursville Bassoon Company (BBC) as of December 31, 2xx1, are shown below. BBC Corporation ($000s) Cash 1,000 Accounts Payable 1,000 Accounts Receivable

The balance sheet and income statement for Barboursville Bassoon Company (BBC) as of December 31, 2xx1, are shown below.
BBC Corporation ($000s) Cash 1,000 Accounts Payable 1,000 Accounts Receivable 2,000 Accruals 500 Inventory 2,000 Notes Payable 500 Current Assets 5,000 Current Liabilities 2,000 Long-Term Debt 1,250 Net Fixed Assets 1,000 Common Stock 500 Retained Earnings 2,250 Total Assets 6,000 Total Liabilities & Owners’ 6,000 BBC Income Statement ($000s) Sales (all credit) $60,000 - Cost of Goods Sold 40,000 Gross Profit 20,000 - Selling, General & Administrative Expense 2,500 - Depreciation Expense 2,500 Earnings Before Interest & Taxes 3,500 - Interest 1,000 Earnings Before Taxes 14,000 - Taxes 4,200 Net Income $9,800
Calculate the cash conversion cycle for BBC and determine the amount of funding that is necessary to support operations. Use a 360 day year in all calculations.

 

May 11 2021 View more View Less

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