Consider the following selected financial data for the Skyway Retailer and Calculate (A) the operating and (B) cash conversion cycles. (check the attached picture) Choose the bullet with the correct answer. (A) 47.6 days and (B) 10 days (A) 57.6 days and (B) 12 days (A) 67.6 days and (B) 22 days (A) 77.6 days and (B) 32 days (A) 87.6 days and (B) 42 days

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Consider the following selected financial data for the Skyway Retailer and Calculate (A) the operating and (B) cash conversion cycles.

(check the attached picture)

Choose the bullet with the correct answer.

  • (A) 47.6 days and (B) 10 days
  • (A) 57.6 days and (B) 12 days
  • (A) 67.6 days and (B) 22 days
  • (A) 77.6 days and (B) 32 days
  • (A) 87.6 days and (B) 42 days
Item
Beginning
Ending
Inventory
P5,000
P7,000
Accounts receivable
1,600
2,400
Accounts payable
2,700
4,800
Net credit sales
P50,000
Cost of goods sold
30,000
Transcribed Image Text:Item Beginning Ending Inventory P5,000 P7,000 Accounts receivable 1,600 2,400 Accounts payable 2,700 4,800 Net credit sales P50,000 Cost of goods sold 30,000
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