Question

Lasky Technologies
(Orchard Park, MA)
		Sales			27,375,000
		CGS			24,637,500
		WACC*			9%
					Claims
Assets
Cash	1,500,000				Accounts Payable	1,350,000
Receivables	2,700,000				Notes Payable	6,000,000
Inventory	4,050,000				Current Liabilities	7,350,000
Current Assets	8,250,000				Long Term Liabilities	24,075,000
Net Fixed Assets	45,000,000				All Equity Accounts	21,825,000
Total Assets	53,250,000				Total Claims	53,250,000
*Funds needed or released change the Notes Payable amount which is a revolving credit bank loan @9%

Question 1 (0.01 points)

Calculate the sales per day. This is a non-graded question so that if you make a mistake the grader can adjust the expected answers to the questions that follow).

Question 2 (0.01 points)

Saved

Calculate the cost of goods sold per day. This is a non-graded question so that if you make a mistake the grader can adjust the expected answers to the questions that follow).

Question 3 (1 point)

What is the receivables period (days sales outstanding) on a sales/day basis? Be sure to state the units of your answer.

Question 4 (1 point)

What is the receivables period (days sales outstanding) on a cost-of-goods-sold/day basis? Be sure to state the units of your answer.

Question 5 (1 point)

What is the Inventory period on a sales/day basis? Be sure to state the units of your answer.

Question 6 (1 point)

What is the inventory period on a cost-of-goods-sold/day basis? Be sure to state the units of your answer.

Question 7 (1 point)

What is the payables period on a sales/day basis? Be sure to state the units of your answer.

Question 8 (1 point)

What is the payables period on a cost-of-goods-sold/day basis? Be sure to state the units of your answer.

Question 9 (1 point)

Find the Cash Conversion Cycle (CCC) according to the version of the model that uses sales per day for receivables and cost of goods per day for inventory and payables.  Be sure to state the units of your answer.

Answer 1

a) sales per day = 27375000/365 = 75000

b) cost of goods sold per day = 24637500/365 = 67500

c) receivales period on sales per day basis = 2700000/75000 = 36 days

d) receivables period on cost of goods sold per day = 2700000/67500 = 40 days.

e) inventory period on sales per day = 4050000/75000 = 54 days

f) inventory period on cost of goods sold per day = 4050000/67500 = 60 days

g) payables period on sales per day basis = 1350000/ 75000 = 18 days

h) payables period on cost of goods sold per day = 1350000/67500 = 20 days