Robinson expects its 2018 sales and cost of goods sold to grow by 20 percent over their
Question:
Robinson expects its 2018 sales and cost of goods sold to grow by 20 percent over their 2017 levels.
a. What will be the effect on its levels of receivables, inventories, and payments if the components of its cash conversion cycle remain at their 2017 levels? What will be its net investment in working capital?
b. What will be the impact on its net investment in working capital in 2018 if Robinson can reduce its inventory period by ten days?
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a If the ratios remain the same a 20 percent increase in sales and COGS will increase AR inventory a...View the full answer
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Related Book For 
Introduction to Finance Markets, Investments and Financial Management
ISBN: 978-1119398288
16th edition
Authors: Ronald W. Melicher, Edgar A. Norton
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