Multiple changes in cash conversion cycle and turn over its very times each year, it has an average collection peod 30 days and an average payment of 3dinys. The firm's law 531 Aenedice in the mendolle avory, and a day you Calculate this cash on cyclis daly cashing expend, and the amount of meeded to suport it canh conversion cycle h. Find the schoon cycle and resource investment requerimies the folowing changes into 1) Shorter the average of by stays 12 Speeds The collection of accounts receivable by an average of 11 Extends the payment period by 10 days the finest for a wement, by how muchwyting, could income is a profits to the clipart the cost of ching the prin pute$2.000, wat action would you recommend to them? Why? Multiple changes in cash conversion cycle Gant Industriels over retory times each yewitherage colection period of days and in ment period of the traw 131 milion Assumere snedence is the interior, ci doada Moda ye * Calcete m' can converse is dwy chwingend, and the world to its conversion cycle Fonda conversion de deuren me the flowing the mucusly Ser the vertory by die 2) Spees the collection of accounts recev by an average of 11 days Extend the payment period y 10 days If the fin y 13% for selvestment, by how much it anything could increase it was the changes in part b? w the cost of achieving the profit 532.000 what action would you recommend them? Why? Multiple changes in cathconversion cycle Garmenty Simes each you, iman watchon pendant them www Asume there are ce in the store profitory, cudayawady w Calculate the cash con, dwly canhed, and the mounted to ports choice . Find the cathcorsion cycle and eveniment reprimera encore umutly (1) Share the average of way by days Speech the collection of accounts receivable by average of 11 days Estende me e pepened by 10 days cofthefim pays for its investment, by how much anything could it is most of the changes in part 2 d. If the cost of achieve the profit in partes $42.000, wat action would you recomand to them? Why? Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 6 times each year, it has an average collection period of 39 days and an average payment period of 32 days. The firm's annual sales are $3.1 million. Assume there is no difference in the investment per dollar of sales in inventory. receivables, and payables, and a 365 day year a Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle. b. Find the firm's cash corwersion cycle and resource investment requirement if it makes the following changes simultaneously (1) Shortens the average age of inventory by 5 days (2) Speeds the collection of accounts receivable by an average of 11 days (3) Extends the average payment period by 10 days c. If the firm pays 13% for its resource investment, by how much it anything, could it increase its annual profit as a result of the changes in part b? d. If the annual cost of achieving the profit in partc is $32,000, what action would you recommend to the firm? Why? Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 6 times each year, it has an average collection period of 3 days and an average payment period of 32 days. The firm's annual sales are $3.1 million. Assume there is no difference in the investment per dollar of sales in inventory receivables, and payables, and a 365 day year. a Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle. b. Find the firm's cash conversion cycle and resource investment requirement if it makes the following changes simultaneously (1) Shortens the average age of inventory by 5 days (2) Speeds the collection of accounts receivable by an average of 11 days. (3) Extends the average payment period by 10 days c. If the firm pays 13% for its resource investment, by how much, if anything, could it increase its annual profit as a result of the changes in part b? d. If the annual cost of achieving the profit in partc is $32,000, what action would you recommend to the firm? Why? Multiple changes in cash conversion cycle and turn over its very times each year, it has an average collection peod 30 days and an average payment of 3dinys. The firm's law 531 Aenedice in the mendolle avory, and a day you Calculate this cash on cyclis daly cashing expend, and the amount of meeded to suport it canh conversion cycle h. Find the schoon cycle and resource investment requerimies the folowing changes into 1) Shorter the average of by stays 12 Speeds The collection of accounts receivable by an average of 11 Extends the payment period by 10 days the finest for a wement, by how muchwyting, could income is a profits to the clipart the cost of ching the prin pute$2.000, wat action would you recommend to them? Why? Multiple changes in cash conversion cycle Gant Industriels over retory times each yewitherage colection period of days and in ment period of the traw 131 milion Assumere snedence is the interior, ci doada Moda ye * Calcete m' can converse is dwy chwingend, and the world to its conversion cycle Fonda conversion de deuren me the flowing the mucusly Ser the vertory by die 2) Spees the collection of accounts recev by an average of 11 days Extend the payment period y 10 days If the fin y 13% for selvestment, by how much it anything could increase it was the changes in part b? w the cost of achieving the profit 532.000 what action would you recommend them? Why? Multiple changes in cathconversion cycle Garmenty Simes each you, iman watchon pendant them www Asume there are ce in the store profitory, cudayawady w Calculate the cash con, dwly canhed, and the mounted to ports choice . Find the cathcorsion cycle and eveniment reprimera encore umutly (1) Share the average of way by days Speech the collection of accounts receivable by average of 11 days Estende me e pepened by 10 days cofthefim pays for its investment, by how much anything could it is most of the changes in part 2 d. If the cost of achieve the profit in partes $42.000, wat action would you recomand to them? Why? Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 6 times each year, it has an average collection period of 39 days and an average payment period of 32 days. The firm's annual sales are $3.1 million. Assume there is no difference in the investment per dollar of sales in inventory. receivables, and payables, and a 365 day year a Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle. b. Find the firm's cash corwersion cycle and resource investment requirement if it makes the following changes simultaneously (1) Shortens the average age of inventory by 5 days (2) Speeds the collection of accounts receivable by an average of 11 days (3) Extends the average payment period by 10 days c. If the firm pays 13% for its resource investment, by how much it anything, could it increase its annual profit as a result of the changes in part b? d. If the annual cost of achieving the profit in partc is $32,000, what action would you recommend to the firm? Why? Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 6 times each year, it has an average collection period of 3 days and an average payment period of 32 days. The firm's annual sales are $3.1 million. Assume there is no difference in the investment per dollar of sales in inventory receivables, and payables, and a 365 day year. a Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle. b. Find the firm's cash conversion cycle and resource investment requirement if it makes the following changes simultaneously (1) Shortens the average age of inventory by 5 days (2) Speeds the collection of accounts receivable by an average of 11 days. (3) Extends the average payment period by 10 days c. If the firm pays 13% for its resource investment, by how much, if anything, could it increase its annual profit as a result of the changes in part b? d. If the annual cost of achieving the profit in partc is $32,000, what action would you recommend to the firm? Why