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Company H has the following working capital data: Accounts Receivable: $50,000 Inventory: $30,000 Accounts Payable: $20,000 Sales: $200,000 COGS: $100,000 Requirements: Calculate the Cash Conversion
Company H has the following working capital data:
- Accounts Receivable: $50,000
- Inventory: $30,000
- Accounts Payable: $20,000
- Sales: $200,000
- COGS: $100,000
Requirements:
- Calculate the Cash Conversion Cycle (CCC).
- Determine the Days Sales Outstanding (DSO).
- Compute the Inventory Turnover Ratio.
- Assess the impact on CCC if the company reduces its inventory by 20%.
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