million and a cost of goods so

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The Greek Connection had sales of
$32.1
million and a cost of goods sold of
$12.8
million in 2013. A simplified balance sheet for the firm appears​ below:
a. Calculate The Greek​ Connection's net working capital in 2013.
b. Calculate the cash conversion cycle of The Greek Connection in 2013.
c. The industry average accounts receivable days is 30 days. What would have been the cash conversion cycle for The Greek Connection in 2013 had it met the industry average for accounts receivable​ days? (Hint: Use a ​ 365-day year.)
 
Assets            Liabilities and Equity        
Cash    $2,344        Accounts payable    $1,600    
Accounts receivable    4,155        Notes payable    1,000    
Inventory    1,325        Accruals    1,220    
Total current assets    $7,824        Total current liabilities    $3,820    
Net plant, property, and equipment    $8,500        Long-term debt    $3,000    
Total assets     $16,324        Total liabilities    $6,820    
            Common equity    $9,504    
            Total liabilities and equity    $16,324    
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