Question
Data on Marshall Inc. for the most recent year are shown below. The firm's new CFO believes that the company could reduce its receivables by
Data on Marshall Inc. for the most recent year are shown below. The firm's new CFO believes that the company could reduce its receivables by $9,974 to reduce its DSO to the industry average level. If this were done, what is the Cash Conversion Cycle before and after the change respectively? Use a 365-day year.
Sales $170,000
Accounts receivable $15,000
Annual COGS $72,000
Average Inventory $3,200
Payables deferral 11 days
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
