Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 8 (10 marks) the following information is

Question 8 (10 marks) The following information is extracted from the financial statements of XP...

90.2K

Verified Solution

Question

Accounting

Question 8 (10 marks)

The following information is extracted from the financial statements of XP Sports Limited:

Cash

$677,423

Accounts Payable

$1,721,669

Accounts Receivable

$1,845,113

Notes Payable

$2,113,345

Inventories

$1,312,478

Total Current Assets

$3,835,014

Total Current Liabilities

$3,835,014

Net Sales

$9,912,332

Cost

$5,947,399

  1. Briefly explain what you understand by the term operating cycle. (2 marks)

Click or tap here to enter text.

  1. What is the operating cycle for XP Sports Limited? (2 marks)

Click or tap here to enter text.

  1. What can you say about XP Sports accounts receivable and inventory management if it is known that the industry average operating cycle is 72 days? (1 mark)

Click or tap here to enter text.

  1. Briefly explain what you understand by the cash conversion cycle. (2 marks)

Click or tap here to enter text.

  1. What is the cash conversion cycle for XP Sports Limited? (2 marks)

Click or tap here to enter text.

  1. What can you say about XP Sports cash conversion cycle if it is known that the industry average cash conversion cycle is 42 days? (1 mark)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

An? airline's public relations department says that the airline rarely loses? passengers' luggage. It further claims...

Basic Math
Q

Estimate the pH of the resulting solution prepared by mixing 1.0 mole of solid disodium phosphate...

Chemistry
Q

A Mack truck and a Honda traveling at the same speed have a head-on collision. The vehicle...

Physics
Q

Which equation below best describes the circle shown in the graph 0 2

Geometry
Q

Find the standard matrix of the given linear transformation from R2 to R Projection onto...

Basic Math
Q

In the diagram, a right circular cylinder with a radius of 3 inches is intersected...

Basic Math
Q

10 If h x 2x 3 and g x X x is continuous at x...

Calculus
Q

Given the function x 3 4x determine the average rate of change from x 1...

Algebra
Q

The following table shows the money supply of country ABC in the year 2010 and...

Accounting
Q

Exodus Limousine Company has $1,000 par value bonds outstanding at 19 percent interest. The bonds...

Accounting
Q

In 2022, Michael has net short-term capital losses of $1,700, a net long-term capital loss...

Accounting
Q

Penny loves pastries. She wanted everyone else to love pastries, too, so she started Penny's...

Accounting