Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pasha Corporation produces motorcycle batteries. Pasha turns out 1 , 3 0 0 batteries a day at a cost of $ 5 per battery for
Pasha Corporation produces motorcycle batteries. Pasha turns out batteries a day at a cost of $ per battery for materials and labor. It takes the firm days to convert raw materials into a battery. Pasha allows its customers days in which to pay for the batteries, and the firm generally pays its suppliers in days. Assume days in year for your calculations.
What is the length of Pasha's cash conversion cycle? Round your answer to two decimal places.
days
At a steady state in which Pasha produces batteries a day, what amount of working capital must it finance? Round your answer to the nearest dollar.
$
By what amount could Pasha reduce its working capital financing needs if it was able to stretch its payables deferral period to days? Round your answer to the nearest dollar.
$
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started