If a company has a cash-conversion cycle of 15 days, an average age of inventory of...

If a company has a cash-conversion cycle of 15 days, an average age of inventory of 40 days and an average payment period of 60 days, calculate the average collection period.

Expert Solution

jeff jeffy answered 2 years ago

Company Inventory Conversion Period, days Average Collection Period, days Payables Deferral Period, days Cash Conversion Cycle,...

Company Inventory Conversion Period, days Average Collection Period, days Payables Deferral Period, days Cash Conversion Cycle, days Adidas 112 27 57 82 Puma 107 18 49 Nike 128 20 43 105 Under Armor 89 24 21 1)calculate CCC for Puma and UA. 2)pick any 1 company of the 4: how its operational liquidity stands versus competitors (other 3 firms)? how can this company improve its liquidity? What are possible risks/limitations to your proposed changes?

CASH CONVERSION CYCLE Zane Corporation has an inventory conversion period of 52 days, an average collection...

CASH CONVERSION CYCLE Zane Corporation has an inventory conversion period of 52 days, an average collection period of 37 days, and a payables deferral period of 25 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle? Round your answer to two decimal places. days If Zane's annual sales are $3,427,440 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer...

Betty's Bagels has a cash cycle of 15 days, an operating cycle of 32 days, and...

Betty's Bagels has a cash cycle of 15 days, an operating cycle of 32 days, and an inventory period of 1.5 days. The company reported cost of goods sold in the amount of $102,000, and credit sales were $206,000. What is the company's average balance in accounts payable? Select one: a. $18,414.36 b. $4,843.84 c. $4,750.65 d. $21,918.00 e. $9,594.52

Florida Distributors have a high cash conversion cycle (CCC); 47 days compared to industry average of...

Florida Distributors have a high cash conversion cycle (CCC); 47 days compared to industry average of 25 days. a) What would you recommend to this company to shorten its cash conversion cycle (CCC)? b) How is reduction in CCC going to effect the profitability of this company? c) Florida Distributors tries to match the maturity of its assets and liabilities. Describe how this company could adopt a more aggressive or a more conservative financing policy.

the conversion cycle period is 24 days and the operating period is 23 days for Company...

the conversion cycle period is 24 days and the operating period is 23 days for Company tiger another company (m) has 57 days for operating period and 69 days for conversion cash period what are the differences and similarities and compare it

Zane Corporation has an inventory conversion period of 89 days, an average collection period of 39...

Zane Corporation has an inventory conversion period of 89 days, an average collection period of 39 days, and a payables deferral period of 31 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle? Round your answer to two decimal places. days If Zane's annual sales are $3,706,915 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer to the nearest...

Zane Corporation has an inventory conversion period of 63 days, an average collection period of 33...

Zane Corporation has an inventory conversion period of 63 days, an average collection period of 33 days, and a payables deferral period of 37 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle? Round your answer to two decimal places. __days If Zane's annual sales are $2,679,070 and all sales are on credit, what is the investment in accounts receivable? Round your answer to the nearest cent. Do not round intermediate...

Find the cash conversion cycle for XYZ in 2018. If the industry averages are 30 days...

Find the cash conversion cycle for XYZ in 2018. If the industry averages are 30 days for sales to cash, 75 days for inventory to sales, and 30 days for purchase to payment, where is XYZ performing better or worse than the industry? How does the XYZ cash conversion cycle compare to the industry? Should XYZ address any or all of these differences and why? Financial Statements for XYZ Corp. Balance Sheet for Period Ending December 31. Assets 2017 2018...

Calculate the operating cash cycle in days if all sales are for cash, inventory is turned...

Calculate the operating cash cycle in days if all sales are for cash, inventory is turned over 7 times a year and creditors are paid on average 5 times a year. Select one: a. -52.1 days b. -20.9 days c. 52.1 days d. 20.9 days

1.) badBanana co. has an average age of inventory equal to 25 days. if its end...

1.) badBanana co. has an average age of inventory equal to 25 days. if its end of year inventory level is $8,500, then what does that imply for the cost of goods sold during the year? (round to the nearest dollar) a.) $582 b.) $4964 c.) $21,250 d.) $124,100 2.) What Ratio measures the ability of the firm to satisfy its short term obligations as they come due? a.) TImes Interest and earned ratio b.) current ratio c.) Inventory turnover...

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