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An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage. As one part
An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, the analyst wants to determine the firm's cash conversion cycle. Using the following information and a 365-day year: Current inventory = $160,000; Annual sales = $1,095,000; Accounts receivable = $180,000; Accounts payable = $36,000; Total annual purchases = $730,000. Calculate the firm's inventory conversion cycle.
Calculate the firm's receivables collection period.
Calculate the firm's payables deferral period.
Calculate the firm's cash conversion cycle (CCC).
Calculate the firm's receivables collection period.
Calculate the firm's payables deferral period.
Calculate the firm's cash conversion cycle (CCC).
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Step: 1
To calculate SL Energy Corporations inventory conversion cycle we use the formula Inventory conversion cycle Average inventory Cost of goods sold x 36...Get Instant Access to Expert-Tailored Solutions
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Step: 3
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