Question
As an operations management consultant, you have been asked to evaluate a furniture manufacturers cash-to-cash conversion cycle under the following assumptions: sales of $23.4 million,
As an operations management consultant, you have been asked to evaluate a furniture manufacturers cash-to-cash conversion cycle under the following assumptions: sales of $23.4 million, cost of goods sold of $20.9 million, 32 operating weeks a year, total average on hand inventory of $2,000,000, accounts receivable equal to $2,445,000, and accounts payable of $3,595,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place.
____week(s)
Based on the following information, how many days of supply of inventory is the firm holding (assume 280 days of operation per year)? Do not round intermediate calculations. Round your answer to one decimal place.
Sales | $8,400,000 |
Cost of goods sold | $7,560,000 |
Gross profit | $840,000 |
Overhead costs | $700,000 |
Net profit | $140,000 |
Total inventory | $2,700,000 |
Fixed assets | $3,200,000 |
Long-term debt | $2,700,000 |
Inventory days' supply: ___ days' supply
Interpret your answer if the industry average inventory days' supply is 25 days. Round your answer to one decimal place.
If the industry average days' supply is 25 days and this firm's IDS is ___ times more
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