6. Exodus Corp. is analyzing the performance of its cash management. On the average, the firm holdsinventory 65 days, pays its suppliers in 35 days, and collects its receivables in 15 days. The firm has acurrent annual outlay of P1,960,000 on operating cycle investments. Exodus currently pays 10 percentfor its negotiated financing. (Assume a 360-day year.)Note: Kindly input your answer with comma.Example: 10,000Calculate the following:a. Cash conversion cycleb. Operating cycle.c. Daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days.

Cash conversion cycle in the business mean the period in which raw material and other resources…

6. Exodus Corp. is analyzing the performance of its cash management. On the average, the firm ho inventory 65 days, pays its suppliers in 35 days, and collects its receivables in 15 days. The firm has current annual outlay of P1,960,000 on operating cycle investments. Exodus currently pays 10 per for its negotiated financing. (Assume a 360-day year.) Note: Kindly input your answer with comma. Example: 10,000 Calculate the following: a. Cash conversion cycle b. Operating cycle. c. Daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days.

6. Exodus Corp. is analyzing the performance of its cash management. On the average, the firm ho inventory 65 days, pays its suppliers in 35 days, and collects its receivables in 15 days. The firm has current annual outlay of P1,960,000 on operating cycle investments. Exodus currently pays 10 per for its negotiated financing. (Assume a 360-day year.) Note: Kindly input your answer with comma. Example: 10,000 Calculate the following: a. Cash conversion cycle b. Operating cycle. c. Daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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