Question
The following month of April (30 days) financial information was reported by three furniture building companies. Calculate the cash-to-cash cycle time for each of the
The following month of April (30 days) financial information was reported by three furniture building companies. Calculate the cash-to-cash cycle time for each of the following furniture building companies: Craig Custom Couch Builders, Tom's Tables, and Jefferson Emerald Design. Which company managed its cash flow best in April?
| Net Revenue | Cost of Revenue (%) | Raw Goods Inventory | WIP Inventory | Finished Goods Inventory | Account Receivable | Accounts Payable | |
| Craig Custom Couch Builders | 11000 | 0.8 | 540 | 268 | 280 | 2680 | 4100 |
| Tom's Tables | 18000 | 0.75 | 680 | 140 | 600 | 3210 | 3200 |
| Jefferson Emerald Design | 8000 | 0.85 | 240 | 200 | 180 | 2200 | 2400 |
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Financial Management Theory And Practice
Authors: Eugene F Brigham, Michael C Ehrhardt
11th Edition
0324259689, 9780324259681
