Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

. Cash conversion cycle Cash management is a very important function of managers. Companies need to manage their operations in a way that they can

image text in transcribed
image text in transcribed
image text in transcribed
. Cash conversion cycle Cash management is a very important function of managers. Companies need to manage their operations in a way that they can sustain growth and yet not run out of cash. Loud Noise Recordings inc, has forecasted sales of $29,000,000 for next year and expects its cost of goods sold (COGS) to remain at 70% of sales. Currently, the firm holds $3,200,000 in inventory, $2,100,000 in accounts receivable, and $2,600,000 in accounts payable. Approximately how long does it take Loud Noise Recordings to corvert its raw materials to its finished products and then to sell those goods? (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.) 57.54days60.42days63.29days54.66days On average, it takes from the time a sale is made until the time cash is collected from customersi Loud Noise Recordin purchoves materials What is the lengthe cordings's cast conversion cycle (coc)? 44.66da) Approximately how long does it take Loud Noise Recordings to convert its raw materials to its finished products and then to sell those goods? (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.) 57.54days60.42days63.29days54.66days On average, it takes from the time a sale is made until the time cash is collected from customers. Loud Noise Recordings relies on customer credit when it buys raw materials from its suppliers. On average, it takes purchases materiais before it sends cash to its suppliers. What is the length of Loud Noise Recordings's cash conversion cycle (CCC)? after the firm. 44.66 days 37.22 days 42.80 days 46.53 days In general, firms prefer a ccc. What is the length of Loud Noise Recordings's cash conversion cycle (CCC)? 44.66 days 37.22 days 42,80 days 46.53 days In general, firms prefer a CCC

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

McMillan On Options

Authors: Lawrence G. McMillan

2nd Edition

0471678759, 978-0471678755

More Books

Students also viewed these Finance questions