In 2019, Cyrus Networks had sales of $618 million and cost of goods sold of $522 million.

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In 2019, Cyrus Networks had sales of $618 million and cost of goods sold of $522 million. Its average inventory was $50 million.

a. What was Cyrus’s average inventory period?

b. How much would the value of the company increase if Cyrus could permanently reduce its average inventory period by 10 days? Assume that there are no offsetting costs to this change.

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Fundamentals of Corporate Finance

ISBN: 978-1260566093

10th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Oct 25, 2019 07:41 AM

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In 2019, Cyrus Networks had sales of $618 million and cost of goods sold of $522 million.

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a The inventory period is 35 days as follows Value Formula IncomeStatement Data Sales ...View the full answer

Fundamentals of Corporate Finance

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