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How to solve the question What is the formula Question 6 a Canadian Bacon Inc financial statements are presented in the table below Based on the information in the table and

How to solve the question? What is the formula?

Question 6

   

a)      Canadian Bacon Inc. financial statements are presented in the table below.

            Based on the information in the table, and using a 365-day year, calculate Average DayAc€?cs Purchases.

Round the answers to two decimal places

Balance Sheet December 31, 2011

Cash and marketable securities

$143,000

Accounts payable

$278,000

Accounts receivable

$354,000

Notes payable

$87,000

Inventories

$672,000

Accrued expenses

$65,000

Prepaid expenses

$12,500

Total current liabilities

$430,000

Total current assets

$1,181,500

Long-term debt

$284,000

Gross fixed assets

$1,675,000

Par value and paid-in-capital

$228,000

Less: accumulated depreciation

$500,000

Retained Earnings

$1,414,500

Net fixed assets

$1,175,000

Common Equity

1,642,500

Total assets

$2,356,500

Total liabilities and ownerAc€?cs equity

$2,356,500

Income Statement Year of 2011

Net sales (all credit)

$3,136,600.00

Less: Cost of goods sold

$2,195,620.00

Selling and administrative expenses

$345,000.00

Depreciation expense

$146,000.00

EBIT

$449,980.00

Interest expense

$45,300.00

Earnings before taxes

$404,680.00

Income taxes

$161,872.00

Net income

$242,808.00

Answer:

   

(5,615.40)

Days payables outstanding

Question 7

a)     Canadian Bacon Inc. financial statements are presented in the table below.

            Based on the information in the table, and using a 365-day year, calculate Days payables outstanding.

Round the answers to two decimal places

Balance Sheet December 31, 2014

Cash and marketable securities

$132,000

Accounts payable

$399,000

Accounts receivable

$311,000

Notes payable

$98,500

Inventories

$512,000

Accrued expenses

$89,300

Prepaid expenses

$11,300

Total current liabilities

$586,800

Total current assets

$966,300

Long-term debt

$799,400

Gross fixed assets

$2,104,000

Par value and paid-in-capital

$298,000

Less: accumulated depreciation

$398,000

Retained Earnings

$988,100

Net fixed assets

$1,706,000

Common Equity

1,286,100

Total assets

$2,672,300

Total liabilities and ownerAc€?cs equity

$2,672,300

Income Statement, Year of 2014

Net sales (all credit)

$4,276,600.00

Less: Cost of goods sold

$3,292,982.00

Selling and administrative expenses

$349,000.00

Depreciation expense

$148,000.00

EBIT

$486,618.00

Interest expense

$49,600.00

Earnings before taxes

$437,018.00

Income taxes

$174,807.20

Net income

$262,210.80

Answer:

   

(46.31)

Cash Conversion Cycle

Question 8

 

American Bacon Inc. financial statements are presented in the table below.

Based on the information in the table, and using a 365-day year, calculate cash conversion cycle

Round the answers to two decimal places

Balance Sheet December 31, 2010

Cash and marketable securities

$102,000

Accounts payable

$287,000

Accounts receivable

$299,000

Notes payable

$61,200

Inventories

$628,000

Accrued expenses

$51,900

Prepaid expenses

$10,300

Total current liabilities

$400,100

Total current assets

$1,039,300

Long-term debt

$415,000

Gross fixed assets

$1,502,000

Par value and paid-in-capital

$376,000

Less: accumulated depreciation

$312,000

Retained Earnings

$1,038,200

Net fixed assets

$1,190,000

Common Equity

1,414,200

Total assets

$2,229,300

Total liabilities and ownerAc€?cs equity

$2,229,300

Income statement, Year of 2010

Net sales (all credit)

$6,387,700.00

Less: Cost of goods sold

$4,726,898.00

Selling and administrative expenses

$345,000.00

Depreciation expense

$148,000.00

EBIT

$1,167,802.00

Interest expense

$50,600.00

Earnings before taxes

$1,117,202.00

Income taxes

$446,880.80

Net income

$670,321.20

Apr 29 2020 View more View Less

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