Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 3 1 days , and has an average collection

Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 31days, and has an average collection period of 51 days. The firm has annual sales of $3.6 million and cost of goods sold of $2.3 million.(Use a365-day year.)
a. Camp's operating cycle, OC, is
enter your response here days.(Round to the nearest whole number.)
Part 2
Camp's cash conversion cycle, CCC, is
enter your response here days.(Round to the nearest whole number.)
Part 3
b.The dollar value of inventory held by the firm is $
enter your response here.(Round to the nearest dollar.)
Part 4
c.If the firm could reduce the average age of its inventory from 73 days to 63days, it would reduce its dollar investment in working capital by $
enter your response here. (Round to the nearest dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Development Finance Innovations For Sustainable Growth

Authors: Nicholas Biekpe, Danny Cassimon, Andrew William Mullineux

1st Edition

331954165X, 978-3319541655

More Books

Students also viewed these Finance questions

Question

Write a Python program to check an input number is prime or not.

Answered: 1 week ago