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Avery Inc. has the following balance sheet: cash: 120k accounts receivable 950k inventories: 360k --------------------------- total current assets: 1.430m net fixed assets: 1.5 --------------------------- total
Avery Inc. has the following balance sheet: cash: 120k accounts receivable 950k inventories: 360k --------------------------- total current assets: 1.430m net fixed assets: 1.5 --------------------------- total assets: 2.930m ===================== accounts payable: 440k notes payable: 500k accruals: 300k --------------------------- total current liabilities: 1.240m long-term debt: 880k total common equity: 810k --------------------------- total liabilities and equity: 2.930m ===================== the firm's current cash conversion cycle is 34.47 days if avery reduces their ccc to 18.25 days, the reduced accounts receivable and increased accounts payable will free up cash for the firm, how much cash will be freed? a) 347,260.27 b) 357,123.29 c) 348,904.11 d) 362,054.79 e) 358,767.12
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