Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $25.0 million,

image text in transcribed
As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $25.0 million, cost of goods sold of $22.5 million, 50 operating weeks a year, total average on hand inventory of $2,300,000, accounts receivable equal to $2,440,000, and accounts payable of $3,605,000. What is the cash-to-Cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? Reducing Inventory weeks of supply and reducing accounts receivable weeks of supply or increasing accounts payable weeks of supply are ways to improve overall firm performance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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 Accounting questions