1. Crawford Company has an inventory conversion period of 45 days, a receivables collection period of 32 days, and a payables deferral period of 30 days. What is the length of the firm's cash conversion cycle? (2 marks) 2. The Cristo Candy Corporation carries an average balance of inventory equal to $400,000. The company's cost of goods sold averages $4.5 million. What are Cristo's (a) inventory turnover and (b) inventory conversion period? (2 marks) 3. Unique Uniforms generally has accounts receivable that equal $480,000. If the accounts receivable turnover for the company is 12, what are its (a) receivables collection period (DSO) and (b) annual credit sales? (2 marks) 4. At any point in time, Grandiron Fertilizer generally owes its suppliers $180,000. The company's cost of goods sold averages $2.52 million. What are Grandiron Fertilizer's (a) payables turnover and (b) payables deferral period (DPO)? (2 marks) 5. Following is information about the Super Shoe Store (SSS): (6 marks) Selling price per unit = $50 Variable cost per unit = $ 30 Fixed operating costs = $120,000 a. What is SSS's operating income (NOI) when sales are 10,000 units (boxes of shoes)? b. How many pairs of shoes does SSS have to sell to break even with its operations? C. If the firm normally sells 10,000 pairs of shoes, what is SSS's degree of operating leverage? 6. The Niendorf Corporation produces tea kettles, which it sells for $15 each. Fixed costs are $700,000 for up to 400,000 units of output. Variable costs are $10 per kettle. (6 marks) a. What is the firm's gain or loss at sales of 125,000 units? Of 175,000 units? b. What is the operating breakeven point? Illustrate by means of a chart. C. What is Niendorf's degree of operating leverage at sales of 125,000 units? Of 150,000 units? Of 175,000 units? Page 1 of 1