Question
(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.)
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