Question
13) To free up cash flow, Klass Joinery Limited is evaluating two proposals. The first is a new inventory control and online ordering system which
13) To free up cash flow, Klass Joinery Limited is evaluating two proposals. The first is a new inventory control and online ordering system which will reduce the average age of inventory from 85 days down to 59 days. It is also considering introducing a cash discount for organizations who pay their account in full earlier. This is likely to reduce the average collection period from 52 days down to 27 days. If both proposals are implemented, what will Klass Joinery Limited's cash conversion cycle be if its average payment period remains at 33.3 days?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started