Answer:
days on inventory 57 + collection cycle 163- payment cycle 63
CCCT = 157 days
Explanation:
The cash-to-cash measures the times from the company paid his good from the time it collect from the customer:
days inventory outstanding + collection cycle - payment cycle
<u>days inventory outstanding:</u>
Where:
where:
COGS $ 1,790,000
Beginning Inventory: $ 273,000
Ending Inventory: $ 290,000
Average Inventory: $ 281,500
Inventory TO 6.358792185
Days on Inventory 57
<u>Collection cycle:</u>
where:
Purchases: 1,575,000
Beginning AP: 227,500
Ending AP: 316,200
Average AP: 271,850
AP TO 5.793636196
payment cycle 63
<u>Collection cycle</u>
Sales 102,000
Average AR 45,500
AR TO 2.241758242
collection cycle 163
Answer:
I would suggest he decrease the sales price.
Explanation:
Because it will might make people rush the product due to its low price compared to other products of another brand.
The low price will create a high demand for the product therefore causing the quantity of the products being produced to increase.
The quality of the product will be very good since the quality is not being reduced only the price therefore it might result in not having the maximum profit needed.
Answer: The correct answer is "E. Cost of goods sold to be overstated and net income to be understated.".
Explanation: The understatement of the ending inventory balance causes:
<u>Cost of goods sold to be overstated and net income to be understated.</u>
The perception of Jensen to blame the management regarding the unavailability of resources is a representation of defensive bias.
<h3>What is bias?</h3>
A bias is a partial psychological orientation, which represents favor towards a particular thing or condition.
When someone does want to blame himself for not being able to complete the tasks being assigned, such a person will represent a defensive bias, so that he diverts the blame from himself.
Hence, the defensive bias of Jensen is represented in the situation as aforementioned.
Learn more about bias here:
brainly.com/question/1236875
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