Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

15. Calculate the Cash Conversion cycle from the following information. (5 Marks) A company purchasing the raw material from its suppliers and paying the money

15. Calculate the Cash Conversion cycle from the following information. (5 Marks) A company purchasing the raw material from its suppliers and paying the money after 40 days of purchase and the inventory is expected to rest is warehouse for 65 days until the customer make purchase and the average collection period from the customers will be 50 days, when the company can possibly convert the inventory in to cash? Marking Scheme: 2 marks on formula and 3 marks on application of values in to formula and the right answer)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cima Official Learning System Financial Operations

Authors: Jo Watkins

6th Edition

1856177912, 978-1856177917

More Books

Students also viewed these Accounting questions

Question

Bring out the limitations of planning.

Answered: 1 week ago

Question

Why should a business be socially responsible?

Answered: 1 week ago

Question

Discuss the general principles of management given by Henri Fayol

Answered: 1 week ago

Question

Detailed note on the contributions of F.W.Taylor

Answered: 1 week ago