Question
Part 2: Last year the Sen Company had revenues = $400 million, COGS = $300 million, average A/R = $10 million, average inventories = $50
Part 2: Last year the Sen Company had revenues = $400 million, COGS = $300 million, average A/R = $10 million, average inventories = $50 million, and average A/P = $5 million. Also assume that Sen is offered terms from its suppliers = 1/10 Net 40 and that the company can borrow from its local bank at an interest rate = 15%/year.
A) what is Sen's DIO (round to the nearest whole day)?
B) what is Sen's DSO (round to the nearest whole day)?
C) what is Sen's DPO (round to the nearest whole day)?
D) what is Sen's cash conversion cycle?
E) how long should Sen wait to pay its suppliers?
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