Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

People Products, Inc., has concerns about managing cash efficiency. Their averages are 90 days for inventories, accounts receivable are collected in 45 days, accounts payable

People Products, Inc., has concerns about managing cash efficiency. Their averages are 90 days for inventories, accounts receivable are collected in 45 days, accounts payable are 40 days after they arise, annual sales are $50 million, goods sold total $25 million and purchases are $10 million. Calculate the length of the firms cash conversion cycle

(Round to the nearest tenth.)

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

Finance Plain And Simple

Authors: Sebastian Nokes

1st Edition

0273731297, 978-0273731290

More Books

Students also viewed these Finance questions