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P 13-6
Average collection cycle.
Use the following account information for Rian Company.
2013 and 2014 Selected Balance Sheet Accounts of Rian Company
2014 Selected Income Statement Items for Rian
Company
Cash sales
Credit sales
Total sales
Cost of goods sold
Rian Company had set a target of 23.2 days for the collection cycle for 2014. If total sales
had remained at $ 965000, how much of the sales revenue would have needed to be cash
sales for the company to have met the collection goal?
P13-7 (similar to)
Average accounts payable
cycle.
Use the following account information to calculate Rian Company's average accounts
payable cycle.
2013 and 2014 Selected Balance Sheet Accounts of Rian Company
2014 Selected Income Statement Items for Rian
Company
Cash sales
$539000
Credit sales
$664000
Total sales
$1203000
Cost of goods sold
$632489
P13-8 (similar to)
Average accounts payable cycle.
Use the following account information for Rian Company.
2013 and 2014 Selected Balance Sheet Accounts of Rian Company
Rian Company had set a target of 16.6 days for its payment (accounts payable) cycle.
What would the ending balance in the accounts payable account for 2014 have needed to
be to reach this target (holding all other accounts the same)?