The financial statements of Homefront, Inc. are presented in the tables below.
Based on the information in the tables, and using a 365-day calendar, calculate the firm's cash conversion cycle.
Round the answer to two decimal places.
Balance Sheet, December 31, 2015
Assets Liabilities and Equity Cash and marketable securities $109,287 Accounts payable $224377 Accounts receivable $391,635 Notes payable $98985 Inventories $599,352 Accrued expenses $76422 Prepaid expenses $10121 Total current liabilities $399784 Total current assets $1110395 Long-term debt $240870 Gross fixed assets $1906628 Par value and paid-in-capital $257990 Less: accumulated depreciation $463943 Retained earnings $1654436 Net fixed assets $1442685 Common equity $1912426 Total assets $2553080 Total liabilities and owner's equity $2553080
Income Statement, 2015
Net sales (all credit) $3404431 Less: cost of goods sold $2723545 Selling and administrative expense $344711 Depreciation expense $107754 EBIT (operating profit) $228421 Interest expense $24358 Earnings before taxes $204063 Income taxes $69381 Net income $134682
Cash conversion cycle:
The financial statements of Homefront, Inc. are presented in the tables below.
Based on the information in the tables, and using a 365-day calendar, calculate the firm's cash conversion cycle.
Round the answer to two decimal places.
Balance Sheet, December 31, 2015
| Assets | Liabilities and Equity | ||
| Cash and marketable securities | $109,287 | Accounts payable | $224377 |
| Accounts receivable | $391,635 | Notes payable | $98985 |
| Inventories | $599,352 | Accrued expenses | $76422 |
| Prepaid expenses | $10121 | Total current liabilities | $399784 |
| Total current assets | $1110395 | Long-term debt | $240870 |
| Gross fixed assets | $1906628 | Par value and paid-in-capital | $257990 |
| Less: accumulated depreciation | $463943 | Retained earnings | $1654436 |
| Net fixed assets | $1442685 | Common equity | $1912426 |
| Total assets | $2553080 | Total liabilities and owner's equity | $2553080 |
Income Statement, 2015
| Net sales (all credit) | $3404431 |
| Less: cost of goods sold | $2723545 |
| Selling and administrative expense | $344711 |
| Depreciation expense | $107754 |
| EBIT (operating profit) | $228421 |
| Interest expense | $24358 |
| Earnings before taxes | $204063 |
| Income taxes | $69381 |
| Net income | $134682 |
Cash conversion cycle:
Related questions
Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, calculate the firmâs the operating profit margin.
Round the answers to two decimal places in percentage form.
Balance Sheet December 31, 2013
| Cash and marketable securities | $112,000 | Accounts payable | $211,000 |
| Accounts receivable | $325,000 | Notes payable | $51,500 |
| Inventories | $426,000 | Accrued expenses | $50,100 |
| Prepaid expenses | $10,700 | Total current liabilities | $312,600 |
| Total current assets | $873,700 | Long-term debt | $225,000 |
| Gross fixed assets | $1,514,000 | Par value and paid-in-capital | $117,000 |
| Less: accumulated depreciation | $315,000 | Retained Earnings | $1,418,100 |
| Net fixed assets | $1,199,000 | Common Equity | 1,535,100 |
| Total assets | $2,072,700 | Total liabilities and ownerâs equity | $2,072,700 |
Income Statement, Year of 2013
| Net sales (all credit) | $3,256,600.00 |
| Less: Cost of goods sold | $2,572,714.00 |
| Selling and administrative expenses | $323,000.00 |
| Depreciation expense | $115,000.00 |
| EBIT | $245,886.00 |
| Interest expense | $29,600.00 |
| Earnings before taxes | $216,286.00 |
| Income taxes | $86,514.40 |
| Net income | $129,771.60 |
Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, caluclate the firmâs the net-working capital â to-sales ratio.
Round the answers to two decimal places in percentage form.
Balance Sheet December 31, 2012
| Cash and marketable securities | $198,000 | Accounts payable | $288,000 |
| Accounts receivable | $469,000 | Notes payable | $65,000 |
| Inventories | $577,000 | Accrued expenses | $84,000 |
| Prepaid expenses | $15,700 | Total current liabilities | $437,000 |
| Total current assets | $1,259,700 | Long-term debt | $237,000 |
| Gross fixed assets | $1,954,000 | Par value and paid-in-capital | $199,000 |
| Less: accumulated depreciation | $476,000 | Retained Earnings | $1,864,700 |
| Net fixed assets | $1,478,000 | Common Equity | 2,063,700 |
| Total assets | $2,737,700 | Total liabilities and ownerâs equity | $2,737,700 |
Income Statement, Year of 2012
| Net sales (all credit) | $7,546,600.00 |
| Less: Cost of goods sold | $6,112,746.00 |
| Selling and administrative expenses | $349,000.00 |
| Depreciation expense | $145,000.00 |
| EBIT | $939,854.00 |
| Interest expense | $49,500.00 |
| Earnings before taxes | $890,354.00 |
| Income taxes | $356,141.60 |
| Net income | $534,212.40 |
