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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

 (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

 (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

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