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.
a. 27 days
b. 73 days
c. 65 days
d. 95 days
47. Based on information from Question 46, Calculate the firms receivables collection period.
a. 33 days
b. 73 days
c. 70 days
d. 24 days
48. Based on information from Question 46, Calculate the firms payables deferral period.
a. 30 days
b. 33 days
c. 70 days
d. 24 days
49. Based on information from Question 46~48, Calculate the firms cash conversion cycle (CCC).
a. 67 days
b. 82 days
c. 36 days
d. 70 days
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International Corporate Finance
Authors: Mark R. Eaker, Frank J. Fabozzi, Dwight Grant
1st Edition
0030693063, 9780030693069
