Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DOES ANYONE CAN HELP TO ANSWER QUESTION ii and iii PLEASE. HELP NEEDED YA !! EMERGENCY (b) Suppose that Spinfluence Berhad has annual sales of

image text in transcribed

DOES ANYONE CAN HELP TO ANSWER QUESTION ii and iii PLEASE. HELP NEEDED YA !! EMERGENCY

(b) Suppose that Spinfluence Berhad has annual sales of RM230,000; cost of goods sold of RM165,000; average inventories of RM4,500; average accounts receivable of RM25,000.00; average accounts payable balance of RM7,000.00 and purchases represent 80% of cost of goods sold. (Note: Use a 365-day year). Assuming that all of Spinfluence's sales and purchases are on credit, what will be the firm's cash conversion cycle? (8 marks) Explain whether the cash conversion cycle (CCC) better represents the liquidity, or profitability position of a company. (3 marks) (iii) What is the importance of cash conversion cycle (CCC) in relation to the company's working capital requirement? (4 marks)

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

An Introduction To Derivatives And Risk Management

Authors: Don M. Chance, Roberts Brooks

7th Edition

0324321392, 9780324321395

More Books

Students also viewed these Finance questions

Question

Demonstrate knowledge of the company/organization and the position.

Answered: 1 week ago

Question

Outline the regulatory framework for workplace health and safety

Answered: 1 week ago