Question

Your boss asks you to compute your company’s cash conversion cycle. Looking at the financial statements,...

Your boss asks you to compute your company’s cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $22,300, accounts receivable averaged $24,600, and accounts payable averaged $15,800. You also see that the company had sales of $141,000 and that cost of goods sold was $112,800. Calculate firm’s cash conversion cycle

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Calculate a firm’s cash conversion cycle using the financial statements info below: -Accounts Receivable    124,000 -Inventory...
Calculate a firm’s cash conversion cycle using the financial statements info below: -Accounts Receivable    124,000 -Inventory      37,000 -Accounts Payable    182,000 -Revenues or Sales 1,420,000 -Cost of Good Sold     994,000
Whitson Co. is looking for ways to shorten its cash conversion cycle. It has annual sales...
Whitson Co. is looking for ways to shorten its cash conversion cycle. It has annual sales of $45,625,000, or $125,000 a day on a 365-day basis. The firm's cost of goods sold is 60% of sales. On average, the company has $7,500,000 in inventory, $5,750,000 in accounts receivable, and $2,750,000 in accounts payable. Its CFO has proposed new policies that would result in a 25% reduction in both average inventories and accounts receivable, and a 10% increase in average accounts...
Westerly Industries has the following financial information. What is its cash conversion​ cycle? (Hint: Use a​...
Westerly Industries has the following financial information. What is its cash conversion​ cycle? (Hint: Use a​ 365-day year.) Sales                                                            ​$150,000 Cost of Goods Sold 120,000 Accounts Receivable 45,000 Inventory   24,000 Accounts Payable 64,500
Westerly Industries has the following financial information. What is its cash conversion​ cycle? (Hint: Use a​...
Westerly Industries has the following financial information. What is its cash conversion​ cycle? (Hint: Use a​ 365-day year.) Sales                                                            ​$110 comma 000110,000 Cost of Goods Sold 88 comma 00088,000 Accounts Receivable                                                35 comma 20035,200 Inventory                                                19 comma 80019,800 Accounts Payable 47 comma 30047,300 The cash conversion cycle is nothing days.  ​(Round to two decimal​ places.)
(1) Use the information below to compute the number of days in the cash conversion cycle...
(1) Use the information below to compute the number of days in the cash conversion cycle for each company. (2) Which company is more effective at managing cash?    Spartan Co. Chen Co. Days' sales in accounts receivable 42 55 Days' sales inventory 25 29 Days' sales in accounts payable 32 37 Spartan Co. Chen Co. Cash to cash conversion cycle More Effective Cash Management    
43. You have recently been hired to analyze a firm’s cash conversion cycle. Using the following...
43. You have recently been hired to analyze a firm’s cash conversion cycle. Using the following information and a 365-day year: Current inventory = $120,000; Annual sales = $600,000; Accounts receivable = $157,808; Accounts payable = $25,000; Total annual purchases = $365,000. Calculate the firm’s cash conversion cycle (CCC). 25 days 73 days 96 days 144 days 44. Based on the results in Question 43, which of the following methods can be used to improve the firm’s cash conversion cycle?...
P15-1 Cash conversion cycle American Products is concerned about managing cash efficiently. On average, inventories have...
P15-1 Cash conversion cycle American Products is concerned about managing cash efficiently. On average, inventories have an age of 80 days, and accounts receivable are collected in 40 days. Accounts payable are paid approximately 30 days after they arise. The firm has annual sales of about $30 million. Goods sold total $20 million, and purchases are $15 million. Calculate the firm’s operating cycle. Calculate the firm’s cash conversion cycle. Calculate the amount of resources needed to support the firm’s cash...
Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the...
Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the following firm: Income statement data: Sales 5,000 Cost of goods sold 4,200 Balance sheet data: Inventory 550 Accounts receivable 110 Accounts payable 270
Cash Conversion Cycle. Calculate the (a) accounts receivable period, (b) accounts payable period, (c) inventory period,...
Cash Conversion Cycle. Calculate the (a) accounts receivable period, (b) accounts payable period, (c) inventory period, and (d) cash conversion cycle for the following firm: Income Statement Data:             Sales                            5,000             Cost of goods sold      4,200             Balance sheet data: Beginning of Year End of Year Inventory 500 600 Accounts receivable 100 120 Accounts payable 250 290 Calculate the accounts receivable period: Response (show formula and numerical values): Calculate the accounts payable period Response (show formula and numerical values):...
Increased Efficiency, Inc. is looking for ways to shorten its cash conversion cycle. It has annual...
Increased Efficiency, Inc. is looking for ways to shorten its cash conversion cycle. It has annual sales of $36,500,000, or $100,000 a day on a 365-day basis. The firm's cost of goods sold is 65% of sales. On average, the company has $9,000,000 in inventory and $8,000,000 in accounts receivable. Its CFO has proposed new policies that would result in a 20% reduction in both average inventories and accounts receivable. She also anticipates that these policies would reduce sales by...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT