Question
Spartan Sporting Goods has $4.5 million in inventory and $2.25 million in accounts receivable. Its average daily sales are $110,000. The firms Cost of Good
Spartan Sporting Goods has $4.5 million in inventory and $2.25 million in accounts receivable. Its average daily sales are $110,000. The firms Cost of Good Sold (COGS) is 60% of the firms sales level. Spartans payables deferral period (accounts payable divided by daily purchases) is 30 days. What is the length of the companys cash conversion cycle (assume a 365-day year)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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
The Structured Credit Handbook
Authors: Arvind Rajan, Glen McDermott, Ratul Roy
1st Edition
0471747491, 978-0471747499
