Everdeen, INC has a 100 day operating cycle. If it's average age of inventory is 35...
Everdeen, INC has a 100 day operating cycle. If it's average age of inventory is 35 days.
How long is its average collection period?
If its average payment period is 30 days what is its cash conversion cycle?
Homework Answers
operating cycle=average age of inventory+average collection period
average collection period=(100-35)=65 days
cash conversion cycle=average age of inventory+average collection period-average payment period
=35+65-30=70 days
Add Answer to:
Everdeen, INC has a 100 day operating cycle. If it's average age
of inventory is 35...
camp manufacturing turns over its inventory 5 times each year, has an average payment period of 35 days, and has an ave...
camp manufacturing turns over its inventory 5 times each year, has an average payment period of 35 days, and has an average collection period of 60 days. the firm has an annual sales are $3.5 million. and cost of good sold of $2.4 million a. Calculate the firms operating cycle and cash conversion cycle. b. What is the dollar value of inventory held by the firm? c. If the firm could reduce the avarage age of its inventory from 73...
Changing cash conversion cycle Camp Manufacturing turns over its inventory five times each year, has an average payment...
Changing cash conversion cycle Camp Manufacturing turns over its inventory five times each year, has an average payment period of 35 days, and has an average collection period of 60 days. the firm has annual sales of $3.5 million and cost of goods sold of $2.4 million. a. Caluclate the firm's operating cycle and cash conversion cycle. b. What is the dollar value of inventory held by the firm? c. If the firm could reduce the average age of its...
Changing cash conversion cycle Camp Manufacturing turns over its inventory 5 times each year, has an...
Changing cash conversion cycle Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 30 days, and has an average collection period of 51 days. The firm has annual sales of $4.0 million and cost of goods sold of $2.2 million. (Use a 365-day year) a. Calculate the firm's operating cycle and cash conversion cycle b. What is the dollar value of inventory held by the firm? c. If the firm could reduce the...
Jordan Air Inc. has average inventory of $1,000,000. Its estimated annual sales are 15 million and...
Jordan Air Inc. has average inventory of $1,000,000. Its estimated annual sales are 15 million and the firm estimates its receivables collection period to be twice as long as its inventory conversion period. The firm pays its trade credit on time; its terms are net 30. The firm wants to decrease its cash conversion cycle by 10 days. It believes that it can reduce its average inventory to $900,000. Assume a 360-day year and that sales will not change. Cost...
Cold Chiller Corporation (CCC) has annual sales of $10 million, cost of goods sold of 60...
Cold Chiller Corporation (CCC) has annual sales of $10 million, cost of goods sold of 60 percent, average age of inventory of 80 days, average collection period of 35 days, average payment period of 30 days, and purchases that are 60 percent of cost of goods sold. How much does CCC have invested in its cash conversion cycle assuming a 365-day year?
Monar Inc.'s CFO would like to decrease its cash conversion cycle by 10 days. The company...
Monar Inc.'s CFO would like to decrease its cash conversion cycle by 10 days. The company carries average inventory of $750,000. Its annual sales are $10 million, its cost of goods sold is 75% of annual sales, and its average collection period is twice as long as its inventory conversion period. It uses a 365-day year. The firm buys on terms of net 30 days, and it pays on time. The CFO believes he can reduce the average inventory to...
Question 49 (Mandatory) (1 point) Operating cycle is measured as: 0 0 days' sales in inventory...
Question 49 (Mandatory) (1 point) Operating cycle is measured as: 0 0 days' sales in inventory plus average collection period. od days' sales in inventory minus average collection period. ** 0 inventory turns plus average collection period. 0 inventory turns minus average collection period. Question 53 (Mandatory) (1 point) Which of these is the period of time after a check has been written, but not yet cleared and deposited? Float Overnight securities O Safety stock Liquid current assets Question 57...
Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory conversion period...
Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 38 days Average collection period = 19 days Payables deferral period = 20 days Answer 33 days 37 days 41 days 45 days 49 days
Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 72 days, an average collection...
Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 72 days, an average collection period of 48 days, and a payables deferral period of 24 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year. Do not round intermediate calculations. a. What is the length of the firm's cash conversion cycle? Round your answer to the nearest whole number. days b. If annual sales are $4,818,000 and all sales are on credit, what...
Margetis Inc. carries an average inventory of $750,000. Its annual sales are $10 million, its...
Margetis Inc. carries an average inventory of $750,000. Its annual sales are $10 million, its cost of goods sold is 75% of annual sales, and its average collectionperiod is twice as long as its inventory conversion period. The firm buys on terms of net 30 days, and it pays on time. Its new CFO wants to decrease the cashconversion cycle by 10 days, based on a 365-day year. He believes he can reduce the average inventory to $647,260 with no...
Changing cash conversion cycle Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 30 days, and has an average collection period of 51 days. The firm has annual sales of $4.0 million and cost of goods sold of $2.2 million. (Use a 365-day year) a. Calculate the firm's operating cycle and cash conversion cycle b. What is the dollar value of inventory held by the firm? c. If the firm could reduce the...
Question 49 (Mandatory) (1 point) Operating cycle is measured as: 0 0 days' sales in inventory plus average collection period. od days' sales in inventory minus average collection period. ** 0 inventory turns plus average collection period. 0 inventory turns minus average collection period. Question 53 (Mandatory) (1 point) Which of these is the period of time after a check has been written, but not yet cleared and deposited? Float Overnight securities O Safety stock Liquid current assets Question 57...
Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 72 days, an average collection period of 48 days, and a payables deferral period of 24 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year. Do not round intermediate calculations. a. What is the length of the firm's cash conversion cycle? Round your answer to the nearest whole number. days b. If annual sales are $4,818,000 and all sales are on credit, what...
Most questions answered within 3 hours.
-
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 20 minutes ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 24 minutes ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 1 hour ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 1 hour ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 1 hour ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 1 hour ago -
The carbonate ion CO3 2- has multiple resonance structures.
a. Draw them and assign the hybridization...
asked 1 hour ago -
In doing an allocation for a basket purchase
Use the individual costs and the total market...
asked 1 hour ago -
what were the social political and economic causes and impacts of
the late 19th century urban...
asked 1 hour ago -
if the magnitude of a velocity vector is 10m/s and it
makes an angle of 45...
asked 1 hour ago -
Which amino acid has a basic R group?
A) tyrosine
B) Isoleucine
C) Glutamic Acid
D)...
asked 1 hour ago -
Is there the need for the government to have hackers. Please
share your thoughts.
asked 1 hour ago