Value | |
Inventory Conversion period = ( Inventory / Cost of goods sold ) * Days in a year = ( 3200000 / 6435000 ) * 365 | 181.51 |
Average collection period = ( Accounts receivable / Annual sales ) * Days in a year = ( 1900000 / 9900000 ) * 365 | 70.05 |
Payables deferral period = ( Accounts payable / Cost of goods sold ) * Days in a year = ( 2600000 / 6435000 ) * 365 | 147.47 |
Cash conversion cycle = Inventory conversion period + Average collection period - Payables deferral period = 181.51 + 70.05 - 147.47 | 104.09 |
Hungry Whale Electronics Company is a mature firm that has a stable flow of business. The...
Value options Inventory conversion period: 56.77 days 43.26 days 45.96 days 131.70 days Average collection period: 34.20 days 23.32 days 86.55 days 29.54 days Payables deferral period: 62.57 days 49.53 days 54.75 days 127.00 days Cash conversion cycle: 31.37 days 91.25 days 29.72 days 28.07 days Then the multiple choices 1. Cash conversion cydle AaAa Consider the case of Green Melon Electronics Company: Green Melon Electronics Company is a mature firm that has a stable flow of business. The following...
Annual sales $9,700,000 Cost of goods sold $7,275,000 Inventory $3,200,000 Accounts receivable $1,800,000 Accounts payable $2,400,000 Blue Ostrich's CFO is interested in determining the length of time funds are tied up in working capital. Use the information in the preceding table to complete the following table. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.) Value Inventory conversion period Average collection period Payables deferral period Cash conversion cycle...