Business, 04.04.2020 08:20 jrstrom9090
Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 6 times each year; it has an average collection period of 42 days and an average payment period of 27 days. The firm's annual sales are $2.7 million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables; and a 365-day year. a. Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle. b. Find the firm's cash conversion cycle and resource investment requirement if it makes the following changes simultaneously. (1) Shortens the average age of inventory by 7 days. (2) Speeds the collection of accounts receivable by an average of 9 days. (3) Extends the average payment period by 9 days. c. If the firm pays 9% for its resource investment, by how much, if anything, could it increase its annual profit as a result of the changes in part b? d. If the annual cost of achieving the profit in part c is $36 comma 000, what action would you recommend to the firm? Why? a. The firm's cash conversion cycle, CCC, is nothing days. (Round to the nearest whole day.)
Answers: 1
Business, 22.06.2019 02:20
Neon light company of kansas city ships lamps and lighting appliances throughout the country. ms. neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by one and one-half days. furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. the bank has a remote disbursement center in florida. a. if neon light company has $2.90 million per day in collections and $1.18 million per day in disbursements, how many dollars will the cash management system free up?
Answers: 2
Business, 22.06.2019 10:20
Blue spruce corp. has the following transactions during august of the current year. aug. 1 issues shares of common stock to investors in exchange for $10,170. 4 pays insurance in advance for 3 months, $1,720. 16 receives $710 from clients for services rendered. 27 pays the secretary $740 salary. indicate the basic analysis and the debit-credit analysis.
Answers: 1
Business, 22.06.2019 12:00
Need today! will get brainliest for right answer! compare and contrast absolute advantage and comparative advantage.
Answers: 1
Business, 22.06.2019 15:30
The school cafeteria can make pizza for approximately $0.30 a slice. the cost of kitchen use and cafeteria staff runs about $200 per day. the pizza den nearby will deliver whole pizzas for $9.00 each. the cafeteria staff cuts the pizza into eight slices and serves them in the usual cafeteria line. with no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. should the school cafeteria make or buy its pizzas?
Answers: 3
Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 6 times each y...
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