Question
1. Ashwell Corp has $1,900,000 of sales, $175,000 of inventories, $200,000 of receivables, and $150,000 of payables. Its cost of goods sold is 60% of
1. Ashwell Corp has $1,900,000 of sales, $175,000 of inventories, $200,000 of receivables, and $150,000 of payables. Its cost of goods sold is 60% of sales. What is Ashwells cash conversion cycle?
2. DuBois Cosmetics buys $999,000 of materials (net of discounts) on terms of 4/11, net 44, and it currently pays on day 11 and takes the discount. DuBois plans to expand, and this will require additional financing. If DuBois decides to forego discounts, what would the nominal percentage cost of its trade credit be, based upon a 365 day year?
3. If current assets are $95,000 and current liabilities are $61,500, what is working capital?
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