Answer:
35 days
Explanation:
Receivables turnover rate = 23.5
Payables turnover rate = 12.5
Inventory turnover rate = 19.15
Length of firm's operating cycle :
(Days sales in inventory + average collection period)
Days' sales in inventory = (365 days / inventory turnover ratio)
Days' sales in inventory = (365 / 19.15)
Days's sales in inventory = 18.717 days
Average collection period : (365 / accounts receivable turnover ratio)
Average collection period = (365 / 23.5)
Average collection period = 15.531
(18.717 + 15.531)
= 34.248
= 35 days
Answer:
Explanation:
Goodwill is defined as the excess in amount of the purchase price of a company over the fair value at acquisition.It is intangible in nature , meaning it can not be physically separated from the other assets. Example are patent , brand name , good employee relation.
1.
Goodwill calculation
Purchase price - $2,500,000
Fair value - $1,800,000
Goodwill - $700,000
2.
No
Under the IAS 36, impairment of assets , goodwill is not amortized but annually tested for impairment as amortization is applicable to intangible assets with a definite useful life while intangible assets with indefinite useful life are annually tested for impairment to evaluate a loss in value experienced.
3
No
Under IAS 38 , Internally generated goodwill are not recognized as no related cost is incurred towards achieving a future benefit
Preexisting condition. It was how insurance companies would not cover many conditions.
Managers have a tendency to let their programmed activities overshadow their nonprogrammed activities because of Gresham's law of planning. Gresham's law was developed by Thomas Gresham and it focuses mainly on economics, not the planning side. The main focus of the law is that bad money will drive out good.
