Question
41. You a chief manager of The Cool Connection. Part of the annual financial indicators of TCC have been shown in the table 1. According
41. You a chief manager of The Cool Connection. Part of the annual financial indicators of TCC have been shown in the table 1. According to the information, please answer the following questions and list the major calculation process.10'
(keep one decimals if necessary; 1 year 50 weeks 360 days)
i) Whats the cash conversion cycle of TCC last year?
ii) In this year, a new warehousing tech has been adopted and expected to speed up the turnover of inventory to 12 per year. So, how much profit can TCC increase in this year through the implementation of the new tech, if other conditions remain unchanged?
iii) Suppose that there is only one supplier to provide all the raw materials which need to be payed averagely 3 billion per year. In this year, the supplier come up a new plan that it will allow TCC to pay it back in two months later if TCC can give a discount of 1% to all the raw materials. Can it be better to accept the new plan if other conditions remain unchanged?
Table 1. Part of the annual financial indicators of TCC
Indicators | Value | Unit |
Turnover of receivables | 3 | Time |
Turnover of inventory | 9 | Time |
Days Payables Outstanding | 60 | Day |
Annual sale | 10 billion | Yuan |
Annual saving interests | 9 | % |
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