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Changing cash conversion cycle Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 30 days, and has an
Changing cash conversion cycle Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 30 days, and has an average collection period of 60 days. The firm has annual sales of $3.3 million and cost of goods sold of $2.3 million. (Use a 365-day year.) Calculate the firm's operating cycle and cash conversion cycle. What is the dollar value of inventory held by the firm? If the firm could reduce the average age of its inventory from 73 days to 63 days, by how much would it reduce its dollar investment in working capital? Camp's operating cycle, OC, is __________ days. (Round to the nearest whole number.) Camp's cash conversion cycle, CCC, is ____________ days. (Round to the nearest whole number.) The dollar value of inventory held by the firm is $ _______________. (Round to the nearest dollar.) If the firm could reduce the average age of its inventory from 73 days to 63 days, it would reduce its dollar investment in working capital by $ ______________. (Round to the nearest dollar.)
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