ne 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 69 days. The firm has annual sales of $3.3 million and cost of goods sold of $2.1 million. (Use a 365-day year.) ptions 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 average age of its inventory from 73 days to 63 days, by how much would it reduce its dollar investment in working capital? a. Camp's operating cycle, OC, is days. (Round to the nearest whole number.) Camp's cash conversion cycle, CCC, is days. (Round to the nearest whole number.) b. The dollar value of inventory held by the firm is $ (Round to the nearest dollar.) (Round to the c. If the firm could reduce the average age of its inventory from 73 days to 63 days, it would reduce its dollar investment in working capital by $ nearest dollar.) Enter your answer in each of the answer boxes.
ne 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 69 days. The firm has annual sales of $3.3 million and cost of goods sold of $2.1 million. (Use a 365-day year.) ptions 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 average age of its inventory from 73 days to 63 days, by how much would it reduce its dollar investment in working capital? a. Camp's operating cycle, OC, is days. (Round to the nearest whole number.) Camp's cash conversion cycle, CCC, is days. (Round to the nearest whole number.) b. The dollar value of inventory held by the firm is $ (Round to the nearest dollar.) (Round to the c. If the firm could reduce the average age of its inventory from 73 days to 63 days, it would reduce its dollar investment in working capital by $ nearest dollar.) Enter your answer in each of the answer boxes.
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
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Question
![ne
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 69 days. The firm has annual sales of $3.3 million and cost of goods sold of $2.1 million. (Use a 365-day year.)
ptions
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 average age of its inventory from 73 days to 63 days, by how much would it reduce its dollar investment in working capital?
a. Camp's operating cycle, OC, is days. (Round to the nearest whole number.)
Camp's cash conversion cycle, CCC, is
days. (Round to the nearest whole number.)
b. The dollar value of inventory held by the firm is $
(Round to the nearest dollar.)
(Round to the
c. If the firm could reduce the average age of its inventory from 73 days to 63 days, it would reduce its dollar investment in working capital by $
nearest dollar.)
Enter your answer in each of the answer boxes.
Type here to search
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Transcribed Image Text:ne
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 69 days. The firm has annual sales of $3.3 million and cost of goods sold of $2.1 million. (Use a 365-day year.)
ptions
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 average age of its inventory from 73 days to 63 days, by how much would it reduce its dollar investment in working capital?
a. Camp's operating cycle, OC, is days. (Round to the nearest whole number.)
Camp's cash conversion cycle, CCC, is
days. (Round to the nearest whole number.)
b. The dollar value of inventory held by the firm is $
(Round to the nearest dollar.)
(Round to the
c. If the firm could reduce the average age of its inventory from 73 days to 63 days, it would reduce its dollar investment in working capital by $
nearest dollar.)
Enter your answer in each of the answer boxes.
Type here to search
insert
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