The document provides information and calculations for three companies - Jamila Limited, Saran Limited, and Esther Limited - to determine their cash conversion cycles based on their inventory days, receivables days, and payables days. For Jamila Limited, the cash conversion cycle is 1.57 days. For Saran Limited, the cash conversion cycle is 22.09 days. For Esther Limited, the cash conversion cycle is -33 days. The document also provides the calculations for determining each company's inventory, receivables, and payables days.
The document provides information and calculations for three companies - Jamila Limited, Saran Limited, and Esther Limited - to determine their cash conversion cycles based on their inventory days, receivables days, and payables days. For Jamila Limited, the cash conversion cycle is 1.57 days. For Saran Limited, the cash conversion cycle is 22.09 days. For Esther Limited, the cash conversion cycle is -33 days. The document also provides the calculations for determining each company's inventory, receivables, and payables days.
The document provides information and calculations for three companies - Jamila Limited, Saran Limited, and Esther Limited - to determine their cash conversion cycles based on their inventory days, receivables days, and payables days. For Jamila Limited, the cash conversion cycle is 1.57 days. For Saran Limited, the cash conversion cycle is 22.09 days. For Esther Limited, the cash conversion cycle is -33 days. The document also provides the calculations for determining each company's inventory, receivables, and payables days.
The document provides information and calculations for three companies - Jamila Limited, Saran Limited, and Esther Limited - to determine their cash conversion cycles based on their inventory days, receivables days, and payables days. For Jamila Limited, the cash conversion cycle is 1.57 days. For Saran Limited, the cash conversion cycle is 22.09 days. For Esther Limited, the cash conversion cycle is -33 days. The document also provides the calculations for determining each company's inventory, receivables, and payables days.
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Question 1: Calculating the cash conversion cycle.
Jamila Limited has payables days of 24.22, inventory days of 7.68 and receivables days of 18.11. What is Jamila Limited's cash conversion cycle?
a) - 1.57 days b) + 1.57 days c) + 13.79 days d) + 34.65 days
= 7.68 +18.11 -24.22
= 25.79-24.22 = 1.57 days
Question 2: Calculating the cash conversion cycle.
Saran Limited has inventory days of 24.69, payables days of 35.35 and receivables days of 32.75. What is Saran Limited's cash conversion cycle? a) + 22.09 days b) + 27.29 days c) + 43.41 days d) + 92.79 days
= 24.69 +32.75 = 57.44 – 35.35 = 22.09 days
Question 3: Calculating the cash conversion cycle.
Esther Limited is a small manufacturing company that trades with all its customers and suppliers on credit. The following figures are drawn from Esther Limited's financial statements for the year ended 31 October 2020: Sales for the year to 31 October 2020: £1,095,000 Cost of sales for the year to 31 October 2020: £693,500 Inventory at 31 October 2020: £91,200 Trade receivables at 31 October 2020: £105,000 Trade payables at 31 October 2020: £95,000
What is Esther Limited's cash conversion cycle?
a) - 37 days b) + 37 days c) + 33 days d) - 33 days Inventory days: £91,200 ÷ £693,500 x 365 = 48 days Receivables days: £105,000 ÷ £1,095,000 x 365 = 35 days Payables days: £95,000 ÷ £693,500 x 365 = 50 days inventory days + receivables days - payables days = the cash conversion cycle. PROBLEM: Information for Questions 1-3: Zain Limited has the following balances in the financial statements for the year ended 31 May 2020: Total sales for the year to 31 May 2020: £9,875,000 Credit sales included in total sales for the year to 31 May 2020: £3,625,000 Inventories at 31 May 2020: £810,000 Cost of sales for the year to 31 May 2020: £6,420,000 Credit purchases included in cost of sales for the year to 31 May 2020: £4,100,000 Trade receivables at 31 May 2020: £317,800 Trade payables at 31 May 2020: £393,150
Question 1: Calculating working capital ratios.
Based on the above information, receivables days at 31 May 2020 are: a) 11.74 days b) 18.07 days c) 28.29 days d) 32.00 days e.) none of the above 317,800 /4,100,000 x 365 =
Question 2: Calculating working capital ratios.
Based on the above information, payables days at 31 May 2020 are: a) 14.53 days b) 22.35 days c) 35.00 days d) 46.05 days e.) none of the above
393,150/4,100,000 x 365 = 35 days
Question 3: Calculating working capital ratios.
Based on the above information, inventory days at 31 May 2020 are: a) 29.94 days b) 46.05 days c) 72.11 days d) 81.56 days e). none of the above ANSWER KEY
PROBLEM: Information for Questions 1-3: Zain Limited has the following balances in the financial statements for the year ended 31 May 2020: Total sales for the year to 31 May 2020: £9,875,000 Credit sales included in total sales for the year to 31 May 2020: £3,625,000 Inventories at 31 May 2020: £810,000 Cost of sales for the year to 31 May 2020: £6,420,000 Credit purchases included in cost of sales for the year to 31 May 2020: £4,100,000 Trade receivables at 31 May 2020: £317,800 Trade payables at 31 May 2020: £393,150
Question 1: Calculating working capital ratios.
Based on the above information, receivables days at 31 May 2020 are: a) 11.74 days b) 18.07 days c) 28.29 days d) 32.00 days e.) none of the above
Accounts Receivables = 317,800 = 31.99 days or 32 days
Credit sales 3625,000 365 365 Question 2: Calculating working capital ratios. Based on the above information, payables days at 31 May 2020 are: a) 14.53 days b) 22.35 days c) 35.00 days d) 46.05 days e.) none of the above
Trade payable / cost of sale or credit puchases 393,150/4,100,000 x 365= 34.99 or 35 days days
Question 3: Calculating working capital ratios.
Based on the above information, inventory days at 31 May 2020 are: a) 29.94 days b) 46.05 days c) 72.11 days d) 81.56 days e). none of the above
810,000/6, 420,00 x 365 =46.0
Aqeela Limited has the following balances in the financial statements for the year ended 31 August 2020 (all figures are in £000):
Total sales for the year to 31 August 2020: £25,250
Cash sales included in total sales for the year to 31 August 2020: £10,100
Inventories at 31 August 2020: £1,250
Gross profit for the year to 31 August 2020: £7,575
Credit purchases for the year included in cost of sales to 31 August 2020: £10,605
Trade receivables at 31 August 2020: £1,125
Current liabilities at 31 August 2020 (including trade payables of £1,020): £2,635
Question 4: Calculating working capital ratios.
Based on the above information, payables days at 31 August 2020 are: a) 35.11 days b) 36.86 days c) 90.69 days d) 95.22 days
2635/10605 x 365 =35.11 days
Question 5: Calculating working capital ratios.
Based on the above information, inventory days at 31 August 2020 are: a) 60.23 days b) 43.02 days c) 25.81 days d) 18.07 days
Invty/ cost of sales x 365 ……….. 25,250- 7,575 = 17,675 cost of sales
1,250/17,675 x 365 = 25.81 days
Question 6: Calculating working capital ratios.
Based on the above information, receivables days at 31 August 2020 are: a) 16.26 days b) 27.10 days c) 40.66 days d) 54.21 days
25,250-10,100 = 15,150 then 1,125/15,150 x 365 = 27.10
(Final Draft - Chapters 1-3) THE STUDY ON THE EFFECTIVENESS OF INFLUENCERS' MARKETING STRATEGIES TO THE CUSTOMERS' BRAND PERCEPTION AMONG GENERATION Z IN SAN JOSE, BATANGAS
(Final Draft - Chapters 1-3) THE STUDY ON THE EFFECTIVENESS OF INFLUENCERS' MARKETING STRATEGIES TO THE CUSTOMERS' BRAND PERCEPTION AMONG GENERATION Z IN SAN JOSE, BATANGAS
