Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please fove step by step instructions Champions Corporation has 56 million of inventory and $2.1 million of accounts receivable. Its average daily sales is $120,000.

image text in transcribed
please fove step by step instructions
image text in transcribed
image text in transcribed
Champions Corporation has 56 million of inventory and $2.1 million of accounts receivable. Its average daily sales is $120,000. The company's payables deferral period is 30 days with total account payables of $1.200,000. Suppose this company is expecting to increase its payable deferral period to 35 days and decrease its inventory conversion period to 100 days, how much will the company expect its Free Cash Flow to increase due to these changes? Assume is days sales outstanding remains unchange Champions Corporation has $6 million of inventory and $2.1 million of accounts receivable. Its average daily sales is $120,000. The company's payables deferral period is 30 days with total account payables of $1,200,000. Suppose this company is expecting to increase its payable deferral period to 35 days and decrease its inventory conversion period to 100 days, how much will the company expect its Free Cash Flow to increase due to these changes ? Assume its days sales outstanding remains unchange Champions Corporation has $6 million of inventory and $2.1 million of accounts receivable. Its average daily sales is $120,000. The company's payables deferral period is 30 days with total account payables of $1,200,000. Suppose this company is expecting to increase its payable deferral period to 35 days and decrease its inventory conversion period to 100 days, how much will the company expect its Free Cash Flow to increase due to these changes ? Assume its days sales outstanding remains unchange

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 A Quantitative Introduction

Authors: Nico Van Der Wijst

1st Edition

1107029228, 978-1107029224

More Books

Students also viewed these Finance questions