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Data of Westfield Goods Inc. for the most recent year is shown below. The firm's new CFO believes that the company could reduce its receivables
Data of Westfield Goods Inc. for the most recent year is shown below. The firm's new CFO believes that the company could reduce its receivables by $25,000 to reduce its DSO to the industry average level. If this were done without impacting sales, what would be the Cash Conversion Cycle after the change? Use a 365-day year. Sales $610,500 Accounts receivable $78,000 Annual COGS $450,000 Average Inventory $69,500 Accounts Payable 67,000
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