C. Exodus Corp. is analyzing the performance of its cash management. On the average,the firm holds inventory 65 days, pays its suppliers in 35 days, and collects itsreceivables in 15 days. The firm has a current annual outlay of P1,960,000 on operatingcycle investments. Exodus currently pays 10 percent for its negotiated financing.(Assume a 360-day year.)Calculate the following:a. Cash conversion cycleb. Operating cycle.c. Daily expenditure and the firm's annual savings if the operating cycle is reducedby 15 days.

Cash conversion cycle in the business mean the period in which raw material and other resources…

Answered: C. Exodus Corp. is analyzing the…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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