9. A COMPANY CURRENTLY HAS ANNUAL REVENUES OF $1,200 WITH COST OF GOODS SOLD OF $500. THE END OF PERIOD FIGURES FOR THE KEY WORKING CAPITAL ACCOUNTS ARE AS FOLLOWS: INVENTORY = $50, A/R = $75 AND A/P = $55. WHAT IS THE CASH CONVERSION CYCLE FOR THIS COMPANY?

10. USING THE INFORMATION FROM THE PREVIOUS PROBLEM, HOW MUCH COULD THE COMPANY INCREASE ITS INVENTORY AND MAINTAIN A CCC OF 25 DAYS OR LESS? (ASSUME ALL ITEMS EXCEPT FOR INVENTORY WILL REMAIN AT THE CURRENT LEVELS.)

11. A COMPANY HAD SALES OF $450,000 OVER THE LAST QUARTER (90 DAYS) AND ENDING A/R OF $275,000. IF THE COMPANYS TERMS ARE NET 45, WHAT IS THE NUMBER OF DAYS PAST DUE FOR THE LAST QUARTER?

12. A COMPANY IS CURRENTLY RUNNING A DSO OF 45 DAYS ON ANNUAL SALES OF $1.25 M. IF THE COMPANY IS PROJECTING THAT NEXT YEARS SALES WILL BE $1.6 M, HOW MUCH WILL THE LEVEL OF A/R INCREASE (ASSUMING DSO REMAINS AT 45 DAYS)?

13. . A COMPANY HAD THE FOLLOWING SALES OVER THE LAST QUARTER: JAN = $150,000, FEB = $300,000 AND MARCH = $450,000. THE COMPANY TYPICALLY COLLECTS 10% OF SALES IN THE MONTH OF SALE, 60% ONE MONTH AFTER SALE AND THE REMAINING 30% TWO MONTHS AFTER SALE. IF THE COMPANY IS PROJECTING SALES OF $550,000 IN APRIL, WHAT WILL THE AMOUNT OF EXPECTED CASH INFLOWS FROM SALES IN THE MONTH OF APRIL?