Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 08, 2024

A company turns its inventory 9 times per year. The company's monthly sales total $18 millions and they all are on credit. Accounts receivable are

A company turns its inventory 9 times per year. The company's monthly sales total $18 millions and they all are on credit. Accounts receivable are $69,750,000 and accounts payable are $40,080,000. The monthly cost of goods sold is $12 millions. What is the company's cash conversion cycle?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

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

Step: 2

Step: 3

Ace Your Homework with AI

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

Get Started

Students also viewed these Finance questions

Question

Customers arrive at a two-server station in accordance with a Poisson process having rate . Upon arriving, they join a single queue. Whenever a server completes a service, the person first in line...

Answered: 1 week ago

Question

★★★★★

Pollution Busters Inc. is considering a purchase of 10 additional carbon sequesters for $ 100,000 apiece. The sequesters last for only 1 year before becoming saturated. Then the carbon is sold to the...

Answered: 1 week ago

Question

★★★★★

The stockholders' equity of Sheridan Company at July 31, 2018 is presented below: Common stock, par value $20, authorized 400,000 shares; issued and outstanding 165000 shares $3300000 Paid-in capital...

Answered: 1 week ago

Question

★★★★★

Handy Home sells windows and doors in the ratio of 7:3 (windows:doors). The selling price of each window is $113 and of each door is $253. The variable cost of a window is $69.00 and of a door is...

Answered: 1 week ago

Question

★★★★★

On October 1, Alice Rodstein started a consulting firm. The asset, liability, and stockholders' equity account balances after each of her first six transactions are shown below. Describe each of...

Answered: 1 week ago

Question

★★★★★

Prepare a Corrected Trial Balance The following trial balance for Hill Company has errors that cause it to be out of balance. Prepare a corrected version of the trial balance for Hill Company....

Answered: 1 week ago

Question

★★★★★

The following data apply to Smoot Sports Inc. for April 2011: 1. Balance per the bank on April $30, \$ 12,250$. 2. Deposits in transit not recorded by the bank, $\$ 2,100$. 3. Bank error; check...

Answered: 1 week ago

Question

★★★★★

Suppose that the domestic demand and supply for hats in a small open economy are given by. where Q denotes quantity and P denotes price. a. If the world price is 10, what is the free trade level of...

Answered: 1 week ago

Question

★★★★★

An analysis of the transactions of Pickett Shipping Services for the month of May appears below. Line 1 summarizes Pickett's accounting equation data as of May 1; lines 2-10 represent the...

Answered: 1 week ago

Previous Question Next Question