2.[EXCEL] Cash conversion cycle: Northern Manufacturing Company management found that during the last year it took an average of 47 days to pay its suppliers, whereas it took 63 days to collect its receivables. The company's days' sales in inventory was 49 days. What was Northern's cash conversion cycle?

2.[EXCEL] Cash conversion cycle: Northern Manufacturing Company management found that during the last year it took an average of 47 days to pay its suppliers, whereas it took 63 days to collect its receivables. The company's days' sales in inventory was 49 days. What was Northern's cash conversion cycle?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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7. Desai Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle? Round to the nearest whole day. Annual sales = Annual cost of goods sold = Inventory = Accounts receivable = $45,000 $23,500 $4,500 $1,800 $2,500 Accounts payable =
CCC Corp. has annual turnovers of inventory, receivables, and payables of 12,18, 8 respectively. Industry average for average ages are 35 days, 25 days, and 40 days for inventories, receivables and payables? What is the difference of the cash conversion cycle of CCC compared to the industry? Use 360 days.
1. [EXCEL] Cash conversion cycle: Wolfgang's Masonry management estimates that it takes the company 27 days on average to pay its suppliers. Management also knows that the company has days' sales in inventory of 64 days and days' sales outstanding of 32 days. How does Wolfgang's cash conversion cycle compare with the industry average of 75 days?
11. You have recently been hired to improve the performance of MJ Cor., which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm's cash conversion cycle. Data gathered were as follows: Current inventory Annual sales :P120,000 : P600,000 :P157,808 :P25,000 : P365,000 : net 30 days : net 50 days. Accounts receivable Accounts payable Total annual purchases Purchases credit terms Receivables credit terms Using 365-day year, the estimated current cash conversion cycle (in days) is? A. 49 В. 100 С. 144 Е. 193 D. 168
BSW & Company has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 75 days Average collection period = 32 days Payables deferral period = 55 days 43 days 62 days 23 days 20 days 52 days
Cash conversion cycle American Products is concerned about managing cash efficiently. On the average, inventories have an age of 76 days, and accounts receivable are collected in 37 days. Accounts payable are paid approximately 31 days after they arise. The firm has annual sales of about $30 million. Cost of goods sold are $21 million, and purchases are $14 million. 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. a. American Products' operating cycle, OC, is days. (Round to the nearest whole number.)
.You have recently been hired to improve the performance of MJ Cor., which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm's cash conversion cycle. Data gathered were as follows: Current inventory : P120,000 Annual sales : P600,000 Accounts receivable : P157,808 : P25,000 : P365,000 : net 30 days : net 50 days. Accounts payable Total annual purchases Purchases credit terms Receivables credit terms Using 365-day year, the estimated current cash conversion cycle (in days) is?
Biondi Manufacturing Company has an average accounts receivable balance of $1,250,000, an average inventory balance of $1,750,000, and an average accounts payable balance of $800,000. Its annual sales are $12,000,000 and its cost of goods sold represents 80 percent of annual sales. Assume there are 365 days in a year. What is BMC’s cash conversion cycle? A. 53.23 days B. 60.83 days C. 84.15 days D. 72.28 days E. 100.55 days
Watts Industries' carries 87 days in Inventory, and collects its Accounts Receivable in 75 days. If the firm pays its Accounts Payable in 26 days, what is Watts' Cash Conversion Cycle?
Berry Manufacturing turns over its inventory 8 times each year, has an Average Payment Period of 35 days and has an Average Collection Period of 60 days. The firm’s annual sales are $3.5 million. Assume there is no difference in the investment per dollar of sales in inventory, receivable, and payables and that there is a 365-day year. A. Calculate the Firm’s Operating Cycle. B. Calculate the Firm’s Cash Conversion Cycle. C. Calculate the Firm’s Daily Cash Operating Expenditure.
CCC Corp. has annual turnovers of inventory, receivables, and payables of 12, 18, 8 respectively. Industry average for average ages are 35 days, 25 days, and 40 days for inventories, receivables and payables? What is the difference of the cash conversion cycle of CCC compared to the industry? Use 360 days. Type dash before the number if unfavorable.
Explain Step By Step Q1: Aztec Products wishes to evaluate its cash conversion cycle (CCC). Research by one of the firm’s financial analysts indicates that on average the firm holds items in inventory for 65 days, pays its suppliers 35 days after purchase, and collects its receivables after 55 days. The firm’s annual sales (all on credit) are about $2.1 billion, its cost of goods sold represent about 67 percent of sales, and purchases represent about 40 percent of cost of goods sold. Assume a 365-day year. A) If Dean Muhammad Suppliers receive an invoice for purchases dated 12/12/2002 subject to credit terms of "2/10, net 30", what is the last possible day the discount can be taken? January 11 January 22 January 30 December 22