Carter's Gym Supply has an operating cycle of 72.15 days. The company has a goal to increase its inventory turnover from 8.41 times to 9.52 times. What will the company's new operating cycle be if it can achieve this goal? Assume 365 days per year. 1:38 pm

Carter's Gym Supply has an operating cycle of 72.15 days. The company has a goal to increase its inventory turnover from 8.41 times to 9.52 times. What will the company's new operating cycle be if it can achieve this goal? Assume 365 days per year. 1:38 pm

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 1P

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

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Carter's Gym Supply has an operating
cycle of 72.15 days. The company has a
goal to increase its inventory turnover
from 8.41 times to 9.52 times. What will
the company's new operating cycle be if it
can achieve this goal? Assume 365 days
per year.
1:38 pm

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