Question
A business analysis has recently been hired to improve the performance of a firm. As one part of your analysis, the analyst wants to determine
A business analysis has recently been hired to improve the performance of a firm. As one part of your analysis, the analyst wants to determine the firms cash conversion cycle. Using the following information and a 365-day year: Current inventory = $2,000,000; Annual sales = $10,000,000; Accounts receivable = $657,534; Accounts payable = $657,534; Cost of goods sold = $8,000,000. Calculate the firms inventory conversion cycle.
27 days | ||
73 days | ||
65 days | ||
95 days |
Based on information from Question 46, Calculate the firms receivables collection period.
33 days | ||
73 days | ||
70 days | ||
24 days |
Based on information from Question 46, Calculate the firms payables deferral period.
30 days | ||
33 days | ||
70 days | ||
24 days |
Based on information from Question 46~48, Calculate the firms cash conversion cycle (CCC).
67 days | ||
82 days | ||
36 days | ||
70 days |
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