Questions

COMM_V 370 101-108 2025W1 COMM 370-Practice Midterm-2025-W1

Multiple dropdown selections

Selected information for the Lenny Company: Inventory Period = 50 days Accounts Payable Period = 25 days Accounts Receivable Period = 35 days Select the correct answer to each of the following questions: a) How many days is Lenny's cash cycle? [ Select ] 85 10 60 40 b) How many times per year does Lenny turn over its inventory? [ Select ] 50 7.3 6.1 14.6 c) If Annual Sales = $4,380,000 and all sales are on credit, what is Lenny's average Accounts Receivable? [ Select ] $125,143 $12,000 $420,000 $87,600

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Step-by-Step Analysis

To tackle these questions, I’ll break down the calculations and check each option systematically. a) How many days is Lenny's cash cycle? - The cash conversion cycle (cash cycle) is typically computed as: Inventory period (days of inventory on hand) + Accounts receivable period (days sales outstanding) − Accounts payable period (days payables outstanding). - Here, Inventory Period = 5......Login to view full explanation

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