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In: Finance
Cash conversion cycle) Historical data for the firm's sales, accounts receivable, inventories, and accounts payable for...
Cash conversion cycle) Historical data for the firm's sales, accounts receivable, inventories, and accounts payable for the Crimson Mfg. Company follow: LOADING.... a. Calculate Crimson's days of sales outstanding, days of payables outstanding, and days of sales in inventory for each of the 5 years. (Assume a 365-day year. Hint: Assume that the firm's cost of goods sold equals 70% of sales.) What has Crimson accomplished in its atempts to better manage its investments in account receivable and inventory? b. Calculate Crimson's cash conversion cycle for each of the 5 years. Evaluate the firm's overall management of its working capital. Assume a 365-day year.
2011 2012 2013
2014 2015
Sales 2,861 3,487
5,264 7,705 12,326
Receivables 410 527
728 901 1,425
Acounts payable 270 454
475 1,045 1,606
Inventories 220 315
414 249 257
Solutions
jeff jeffy answered 2 hours agoRelated Solutions
(Cash conversion cycle) Historical data for the firm's sales, accounts receivable, inventories, and accounts payable for...
(Cash conversion cycle) Historical data for the firm's sales,
accounts receivable, inventories, and accounts payable for the
Crimson Mfg. Company follow:
a. Calculate Crimson's days of sales outstanding, days of
payables outstanding, and days of sales in inventory for each of
the 5 years. (Assume a 365-day year. Hint: Assume that the
firm's cost of goods sold equals 70% of sales.) What has Crimson
accomplished in its atempts to better manage its investments in
account receivable and inventory?
b. Calculate...
Cash $30,000 Accounts receivable 63,800 Accounts payable 52,500 Short-term notes payable 11,000 Inventories 66,000 Gross fixed...
Cash
$30,000
Accounts receivable
63,800
Accounts payable
52,500
Short-term notes payable
11,000
Inventories
66,000
Gross fixed assets
1,061,000
Accumulated depreciation
86,000
Long-term debt
210,000
Common stock
480,000
Other assets
25,000
Retained earnings
?
Complete the part of the common-sized balance sheet
below. (Round to one decimal place.
NOTE:
Input the Accumulated depreciation account as a negative
value.)
Common-sized Balance Sheet
ASSETS
Cash
$
30,000
%
Accounts receivable
63,800
Inventories
66,000
Total current assets
$
159,800
%
Gross fixed assets
$...
CASH CONVERSION CYCLE Parramore Corp has $12 million of sales, $2 million of inventories, $4 million...
CASH CONVERSION CYCLE
Parramore Corp has $12 million of sales, $2 million of
inventories, $4 million of receivables, and $2 million of payables.
Its cost of goods sold is 80% of sales, and it finances working
capital with bank loans at an 9% rate. Assume 365 days in year for
your calculations. Do not round intermediate steps.
What is Parramore's cash conversion cycle (CCC)? Do not round
intermediate calculations. Round your answer to two decimal
places.
________ days
If Parramore...
CASH CONVERSION CYCLE Parramore Corp has $12 million of sales, $1 million of inventories, $4 million...
CASH CONVERSION CYCLE
Parramore Corp has $12 million of sales, $1 million of
inventories, $4 million of receivables, and $1 million of payables.
Its cost of goods sold is 65% of sales, and it finances working
capital with bank loans at an 7% rate. Assume 365 days in year for
your calculations. Do not round intermediate steps.
A. What is Parramore's cash conversion cycle (CCC)? Do not round
intermediate calculations. Round your answer to two decimal
places.
Answer 121.67 days...
CASH CONVERSION CYCLE Parramore Corp has $10 million of sales, $3 million of inventories, $2.5 million...
CASH CONVERSION CYCLE
Parramore Corp has $10 million of sales, $3 million of
inventories, $2.5 million of receivables, and $2.75 million of
payables. Its cost of goods sold is 65% of sales, and it finances
working capital with bank loans at a 9% rate. Assume 365 days in
year for your calculations.
What is Parramore's cash conversion cycle (CCC)? Do not round
intermediate calculations. Round your answer to two decimal
places.
days
If Parramore could lower its inventories and
receivables...
CASH CONVERSION CYCLE Parramore Corp has $17 million of sales, $2 million of inventories, $4 million...
CASH CONVERSION CYCLE
Parramore Corp has $17 million of sales, $2 million of
inventories, $4 million of receivables, and $1 million of payables.
Its cost of goods sold is 65% of sales, and it finances working
capital with bank loans at an 9% rate. Assume 365 days in year for
your calculations. Do not round intermediate steps.
What is Parramore's cash conversion cycle (CCC)? Do not round
intermediate calculations. Round your answer to two decimal
places.
______ days
If Parramore...
CASH CONVERSION CYCLE Parramore Corp has $12 million of sales, $1 million of inventories, $2 million...
CASH CONVERSION CYCLE
Parramore Corp has $12 million of sales, $1 million of
inventories, $2 million of receivables, and $1 million of payables.
Its cost of goods sold is 70% of sales, and it finances working
capital with bank loans at an 6% rate. Assume 365 days in year for
your calculations. Do not round intermediate steps.
What is Parramore's cash conversion cycle (CCC)? Do not round
intermediate calculations. Round your answer to two decimal
places.
days
If Parramore could...
Cash conversion cycle Primrose Corp has $14 million of sales, $1 million of inventories, $2 million...
Cash conversion cycle
Primrose Corp has $14 million of sales, $1 million of
inventories, $2 million of receivables, and $1 million of payables.
Its cost of goods sold is 65% of sales, and it finances working
capital with bank loans at an 8% rate. Assume 365 days in year for
your calculations. Do not round intermediate steps.
What is Primrose's cash conversion cycle (CCC)? Round your
answer to two decimal places.
________ days
If Primrose could lower its inventories and...
CASH CONVERSION CYCLE Parramore Corp has $15 million of sales, $1 million of inventories, $3 million...
CASH CONVERSION CYCLE
Parramore Corp has $15 million of sales, $1 million of
inventories, $3 million of receivables, and $2 million of payables.
Its cost of goods sold is 80% of sales, and it finances working
capital with bank loans at an 7% rate. Assume 365 days in year for
your calculations. Do not round intermediate steps.
What is Parramore's cash conversion cycle (CCC)? Do not round
intermediate calculations. Round your answer to two decimal
places.
days
If Parramore...
CASH CONVERSION CYCLE Parramore Corp has $14 million of sales, $1 million of inventories, $3 million...
CASH CONVERSION CYCLE
Parramore Corp has $14 million of sales, $1 million of
inventories, $3 million of receivables, and $2 million of payables.
Its cost of goods sold is 65% of sales, and it finances working
capital with bank loans at an 6% rate. Assume 365 days in year for
your calculations. Do not round intermediate steps.
What is Parramore's cash conversion cycle (CCC)? Do not round
intermediate calculations. Round your answer to two decimal
places.
days
If Parramore could...
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