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B-MLEC408 BOM31 ELECTIVE 3 (MANAGERIAL ACCOUNTING FOR BOM)

2nd Sem ( 2022-2023 )
FA03: Drills on Cash Conversion Cycle

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Question 1
INSTRUCTIONS:
1.  ROUND - OFF the number of times to two decimal places. For example:  
20.755 should be encoded as 20.76 times
20.754 should be encoded as 20.75 times
 

2. ROUND - UP the number of days and amounts to whole number.For example:  

20.75 should be encoded as 21 days
20.01 should be encoded as 21 days
P2,365.56 should be encoded as 2366
 P2,365.01 should be encoded as 2366
 

3.  For the number of times, encode your answer in two decimal places using ROUND -
OFF,  and in computing the number of days.  
4.  For the number of days and amount, encode your answer in whole number using
the ROUND - UP, and in computing the Deferral Period and Conversion Cycle.
5.  DO NOT USE Peso sign and comma in your answers.
 
 
Problem:  Below are the financial data of XYZ Company:
Sales  -  P4,800,000
Cost of Goods Sold  -  P3,400,000
Average Inventory  -   P420,000
Average Accounts Receivable  -   P330,000
Average Accounts Payable  -   P220,000
Number of days   -             365
 
Required:  Determine the following:
1.  Inventory Turnover =  _____ times
2.  Inventory Conversion Period = _____  days
3.  Accounts Receivable Turnover =  _____  times
4.  Receivable Collection Period =  _____  days
5.  Purchases per Day =  _____  per day
6.  Payable Deferral Period =  _____  days
7.  Cash Conversion Cycle  =  _____   days
Response: 8.10

Response: 45

Response: 14.55

Response: 26

Response: 9315

Response: 24

Response: 47