Sunday
September 21, 2014

Homework Help: FINANCE

Posted by RAVEN on Monday, October 19, 2009 at 9:44pm.

Cash conversion cycle American Products is concerned about managing cash efficiently. On the average, inventories have an age of 90 days, and accounts receivable are collected in 60 days. Accounts payable are paid approximately 30 days after they arise. The firm has annual sales of about $30 million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables; and a 365-day year.

a. Calculate the firm's operating cycle.
b. Calculate the firm's cash conversion cycle.
c. Calculate the amount of resources needed to support the firm's cash conversion
cycle.
d. Discuss how management might be able to reduce the cash conversion cycle

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - . Pretty Lady Cosmetic Products has an average production process time...
Finance - Pretty Lady Cosmetic Products has an average production process time ...
Accounting - Which of these assets are "quick assets"? -Cash and cash ...
Accounting - Which of these assets are "quick assets"? -Cash and cash ...
Accounting - Which of these assets are "quick assets"? -Cash and cash ...
Accounting - Which of these assets are "quick assets"? -Cash and cash ...
Finance - Imagine the CFO of a company has asked you, the auditor, to review the...
Finance - Calculate the accounts receivable period, accounts payable period, ...
Financial Accounting - Calculate accounts receivable turnover ratio. Calculate ...
Finance - You have reviewed the books of Anderson Incorporated and learned the ...

Search
Members