Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(Related to Checkpoint 18.2) (Calculating the cash conversion cycle)Network Solutions just introduced a new, fully automated manufacturing plant that produces 2000 wireless routers per day

(Related to Checkpoint 18.2) (Calculating the cash conversion cycle)Network Solutions just introduced a new, fully automated manufacturing plant that produces

2000 wireless routers per day with materials costs of$40 per router and no other costs. The average number of days a router is held in inventory before being sold is 67 days. In addition, they generally pay their suppliers in 12 days, while collecting from their customers after 21 days.

Please compute: If they stretched their payments to suppliers from 12 days to 32 days, the working capital would be reduced by? (Round to the nearest dollar.)

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

Foundations of Financial Management

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

10th Canadian edition

1259261018, 1259261015, 978-1259024979

More Books

Students also viewed these Finance questions