he Butler-Huron Company’s balance sheet and income statement for last year are as follows: Balance Sheet (in Millions of Dollars) Assets Liabilities and Equity Cash and marketable securities $95 Accounts payable*** $810 Accounts receivable* 977 Accrued liabilities Inventories** 1,825 (salaries and benefits) 584 Other current assets 45 Other current liabilities 290 Total current assets $2,942 Total current liabilities $1,684 Plant and equipment (net) 3,088 Long-term debt and other Other assets 6,068 liabilities 2,764 Total assets $6,068 Common stock 152 Retained earnings 1,468 Total stockholders’ equity $1,620 Total liabilities and equity $6,068 *Assume that all sales are credit sales and that average accounts receivable are the same as ending accounts receivable. **Assume that average inventory over the year was the same as ending inventory. ***Assume that average accounts payable are the same as ending accounts payable. Income Statement (in Millions of Dollars) Net sales $13,157 Cost of sales 9,217 Selling, general, and administrative expenses 2,593 Other expenses 859 Total expenses $12,669 Earnings before taxes 488 Taxes 195 Earnings after taxes (net income) $293 Assume that there are 365 days per year. Determine Butler-Huron’s cash conversion cycle. Round intermediate calculations and answer to one decimal place. days Determine Butler-Huron’s cash conversion cycle assuming that 65 percent of annual sales are credit sales (that is, 35% represent cash sales). Round intermediate calculations and answer to one decimal place. days Determine Butler-Huron’s cash conversion cycle assuming that 45 percent of annual sales are credit sales. Round intermediate calculations and answer to one decimal place. days

he Butler-Huron Company’s balance sheet and income statement for last year are as follows: Balance Sheet (in Millions of Dollars) Assets Liabilities and Equity Cash and marketable securities $95...

he Butler-Huron Company’s balance sheet and income statement for last year are as follows:

Balance Sheet (in Millions of Dollars)

Assets		Liabilities and Equity

Cash and marketable securities	$95	Accounts payable***	$810
Accounts receivable*	977	Accrued liabilities
Inventories**	1,825	(salaries and benefits)	584
Other current assets	45	Other current liabilities	290
Total current assets	$2,942	Total current liabilities	$1,684
Plant and equipment (net)	3,088	Long-term debt and other
Other assets	6,068	liabilities	2,764
Total assets	$6,068	Common stock	152
		Retained earnings	1,468
		Total stockholders’ equity	$1,620
		Total liabilities and equity	$6,068

*Assume that all sales are credit sales and that average accounts receivable are the same
as ending accounts receivable.
**Assume that average inventory over the year was the same as ending inventory.
***Assume that average accounts payable are the same as ending accounts payable.

Income Statement (in Millions of Dollars)

Net sales	$13,157
Cost of sales	9,217
Selling, general, and administrative expenses	2,593
Other expenses	859
Total expenses	$12,669
Earnings before taxes	488
Taxes	195
Earnings after taxes (net income)	$293

Assume that there are 365 days per year.

Determine Butler-Huron’s cash conversion cycle. Round intermediate calculations and answer to one decimal place.
days

Determine Butler-Huron’s cash conversion cycle assuming that 65 percent of annual sales are credit sales (that is, 35% represent cash sales). Round intermediate calculations and answer to one decimal place.
days

Determine Butler-Huron’s cash conversion cycle assuming that 45 percent of annual sales are credit sales. Round intermediate calculations and answer to one decimal place.
days

Jun 08, 2022