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Bradbury Corporation turns its inventory five times each year, has an average payment period of 25 days, and has an average collection period of 32
Bradbury Corporation turns its inventory five times each year, has an average payment period of 25 days, and has an average collection period of 32 days. The firm's annual sales are N$3.6 billion, its cost of goods sold represents 80% of sales, and its purchases represent 80% of the cost of goods sold. Assume a 365-day year.
Required:
4.l calculate the firm's operating cycle and cash conversion cycle.
4.2 Calculate the total resources invested in the firm's CCC.
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