Question
Your firm has annual sales of 11 million. Cost of goods sold represent 85percent of this value and purchases are 80 percent of cost of
Your firm has annual sales of 11 million. Cost of goods sold represent 85percent of this value and purchases are 80 percent of cost of goods sold. Your firm has an AAI (Average Age of Inventory) of 60 days, an APP (Average Payment Period) of 25 days, and an ACP (Average Collection Period) of 45 days. What total amount of resources has your firm invested in its cash conversion cycle?
Your firm has annual sales of 11 million. Cost of goods sold represent 85percent of this value and purchases are 80 percent of cost of goods sold. Your firm has an AAI (Average Age of Inventory) of 60 days, an APP (Average Payment Period) of 25 days, and an ACP (Average Collection Period) of 45 days. What is your firm's OC (operating cycle)?
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Project Finance In Construction
Authors: Tony Merna, Yang Chu, Faisal F. Al-Thani
1st Edition
1444334778, 978-1444334777
