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.

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

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...

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

Calvani, Inc., has a cash cycle of 44.5 days, an operating cycle of 65 days, and...

Calvani, Inc., has a cash cycle of 44.5 days, an operating cycle of 65 days, and an inventory period of 28 days. The company reported cost of goods sold in the amount of $344,000, and credit sales were $567,000. What is the company’s average balance in accounts payable and accounts receivable? Average accounts payable $ _______ Average accounts receivable $______

which of the following statements regarding cash conversion cycle are TRUE? A. Cash conversion cycle depicts...

which of the following statements regarding cash conversion cycle are TRUE? A. Cash conversion cycle depicts the amount of days it takes for the firm to receive cash from sales B. Cash conversion cycle is calculated as follows: day sales outstanding + days payable outstanding - days inventory outstanding C. Cash conversion cycle is a measure of liquidity risk D. Cash conversion cycle measure the time it takes for the firm to exhaust its cash in its operations

Subjects