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1 a. The Lamine Corporation has an annual credit sale of BDT 800,000, annual cost of goods sold of BDT 1,200,000 and average accounts receivable
1 a. The Lamine Corporation has an annual credit sale of BDT 800,000, annual cost of goods sold of BDT 1,200,000 and average accounts receivable balance of BDT 200,000. Also, the company holds BDT 300,000 of average inventory balance. (i) What is the Cash Conversion Cycle (CCC) for Lamine Corporation, if the company has a payables deferral period 90 days? (ii) Currently, the company produces 60 units of products daily with approximately BDT 3,343 for raw materials and labor per unit. Management is considering installation of a new high-tech machine that would allow them to decrease its production period by 30 days. How much would be the new working capital financing requirement if the new machine were installed (assuming the change does not affect the receivable collection period, product cost or units)
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