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A Corp. had total sales of $1,000,000 in 2018 (80 % of its sales are credit). The company's gross profit margin is 20%, its ending
A Corp. had total sales of $1,000,000 in 2018 (80 % of its sales are credit). The company's gross profit margin is 20%, its ending inventory is $100,000, and its accounts receivable balance is $60,000. What additional amount of cash could the firm have generated if it had increased its inventory turnover ratio to 10.0 and reduced its average collection period to 22.375 days. With the same level of sales?
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