90.2K

Verified Solution

Link Copied!

(Activity ratios) The following financial information is for Ambroise Industries Inc.: Sales Cost of goods sold Accounts receivable Inventory Accounts payable Total assets 2020 $5,032,000 2,214,080 631,890 829,600 188,350 1,885,510 2019 $4,573,000 2,012,120 527,210 735,420 214,410 1,808,030 Ambroise is a distributor of auto parts operating in eastern Ontario that offers 30-day terms and has all sales on credit. The company has a large inventory due to the number of parts it stocks for different makes and models of cars. Most of its suppliers offer terms of 30 days, and Ambroise tries to stay on good terms with its suppliers by paying on time. * Your answer is incorrect. What is the average length of time that it takes Ambroise to pay its payables? (Round answer to 1 decimal place, e.g. 18.4. Round intermediate calculations to 2 decimal places.) 11 days Accounts payable payment period * Your answer is incorrect. Assume that Ambroise finances its inventory with a working capital loan from the bank. If Ambroise could improve its inventory management system and reduce the days to sell inventory to an average of 50 days, how much lower would the company's bank loan be? (Round answer to 0 decimal places, e.g. 45,482.) $ $ 1615031 Company's bank loan would be

Answer & Explanation Solved by verified expert

See Answer