Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(b) Go Glass Berhad is concerned about its cash management. On average, it has the following records: Day's sales in inventory (duration of inventory on
(b) Go Glass Berhad is concerned about its cash management. On average, it has the following records: Day's sales in inventory (duration of inventory on shelf) = 90 days Accounts receivables collection period = 90 says Accounts payable period = 60 days Annual sales = RM 14 million Cost of goods sold = RM 9.5 million Purchases = RM 5 million (Note: use a 365-day year) (i) Calculate the firm's operating cycle. (2 marks) (ii) Calculate the firm's cash conversion cycle. (2 marks) (iii) What is the amount of resources needed to support the firm's cash conversion cycle? (Round the answer to 0 decimal places) (8 marks) (iv) Give THREE (3) suggestions on how the firm can make its cash conversion cycle be more efficient
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started