1. IMC Ltd. has consistent annual sales of $75 million, cost of goods sold (COGS) of $61...
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1. IMC Ltd. has consistent annual sales of $75 million, cost of goods sold (COGS) of $61 million, and operating expenses of $5 million. Company policy is to maintain an inventory balance equal to 40% of COGS at all times. In accordance with the firms credit policy, 90% of sales are on credit, with all customers paying on the due date. The accounts receivable balance is constant at $4.5 million. IMC always pays its bills exactly on the due date, resulting in an average accounts payable balance of $5.5 million. Based on this information, what is IMCs estimated cash conversion cycle (CCC)?
a) 112.66 days
b) 137.42 days
c) 137.48 days
d) 139.91 days
Related Book For
Stats Data And Models
ISBN: 662
4th Edition
Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock
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