Intro

Foxconn makes 16,000 iPods a day at a cost of $15 each. The production process takes 18 days, including delivery. Foxconn pays its suppliers on average after 20 days and gets paid by Apple 60 days after delivery.

Attempt 1/10 for 8.5 pts.

Part 1

How long is Foxconn's cash cycle (in days)?

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Attempt 1/10 for 8.5 pts.

Part 2

How much working capital must the company finance?

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Attempt 1/10 for 8.5 pts.

Part 3

If Foxconn could pay its suppliers only after 40 days, how much working capital would it save?

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