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Please do the yellow mark questions14.3 ,14.4 ,14.7 ,14.8 Thank you! 14.3 Cash conversion cycle: Gleeson Automotive estimates that it takes the company about 62
Please do the yellow mark questions14.3 ,14.4 ,14.7 ,14.8 Thank you!
14.3 Cash conversion cycle: Gleeson Automotive estimates that it takes the company about 62 days to collect cash from customers on finished goods from the day it receives raw mat- erials and it takes about 65 days to pay its suppliers. What is the company's cash conversion cycle? Interpret your answer. 14.4 Operating cycle: Lilly Bakery distributes its products to more than 75 restaurants and delis The company's collection period is 27 days and it keeps its inventory for 4 days. What is Lilly Bakery's operating cycle? 14.5 Operating cycle: NetSpeed Technologies is a telecom component manufacturer. The com- pany typically has a collection period of 44 days and days' sales in inventory of 29 days. What is the operating cycle for NetSpeed Technologies? 14.6 Cost of trade credit: Sybex Ltd sells its goods with terms of 2/10 EOM, net 30. What is the implicit cost of the trade credit? 14.7 Cost of trade credit: Juggs Ltd sells its goods with terms of 4/10 EOM, net 60. What is the implicit cost of the trade credit? 14.8 Effective interest rate: The Turnkey Bank requires borrowers to keep an 8 per cent com- ensating balance. Gorman Tewels borrows $340 000 at a 7 per cent stated APR. What is the effective interest rate on the loanStep by Step Solution
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