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Changing cash conversion cycle   Camp Manufacturing turns over its inventory 55 times each​ year, has an...

Changing cash conversion cycle   Camp Manufacturing turns over its inventory 55 times each​ year, has an average payment period of 3636 days, and has an average collection period of 5959 days. The firm has annual sales of $3.9 million and the cost of goods sold of​ $2.2million.  ​(Use a​ 365-day year.)

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?

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jeff jeffy answered 3 months ago
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