Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Please explain it in detail. As a new finance manager of S&T Pte Ltd, you are responsible in managing the firm's financial affairs. Your review
Please explain it in detail.
As a new finance manager of S&T Pte Ltd, you are responsible in managing the firm's financial affairs. Your review of the business cycle reveals that S&T Pte Ltd's inventory typically remains with the fimm for 20 days before it is sold and requires 30 days for the monies to be collected from the customers. On average, the firm takes 40 days to pay its suppliers. a) Compute the cash conversion cycle (CCC) of S&T Pte Ltd. Comment on your answer. (3 marks) b) Should S&T Pte Ltd lengthen or shorten its CCC? Why? (3 marks) c) Suggest TWO ways in which S&T Pte Ltd can improve its CCCStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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