Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Greek Connection had sales of $32.3 million and a cost of goods sold of $12.9 million in 2018. A simplified balance sheet for the

image text in transcribedimage text in transcribed

The Greek Connection had sales of $32.3 million and a cost of goods sold of $12.9 million in 2018. A simplified balance sheet for the firm appears below: a. Calculate The Greek Connection's net working capital in 2018. b. Calculate the cash conversion cycle of The Greek Connection in 2018. c. The industry average accounts receivable days is 30 days. What would have been the cash conversion cycle for The Greek Connection in 2018 had it met the industry average for accounts receivable days? (Hint: Use a 365-day year.) (Click on the following icon in order to copy the contents of the table below into a spreadsheet.) Assets Cash Accounts receivable Inventory Total current assets Net plant, property, and equipment Total assets THE GREEK CONNECTION BALANCE SHEET as of December 31, 2018 (thousands of dollars) Liabilities and Equity $2,309 Accounts payable 4,165 Notes payable 1,082 Accruals $7,556 Total current liabilities $8,500 Long-term debt $16,056 Total liabilities Common equity Total liabilities and equity $1,530 1,000 1,220 $3,750 $3,000 $6,750 $9,306 $16,056

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

Students also viewed these Finance questions