7. Interpret the given and the cash conversion cycle. Provide points of improvement. Be specific. Answer in three to five sentences.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Only number 7! Thank you in advanced!
5. Using the given, compute the cash
conversion cycle of the entity.
Beginning
Ending
Average
P 300,000 P 350,000 P 325,000
200,000
Trade receivables
800,000
???
Inventory
Trade payables
300,000
???
650,000
For the year
Sales (all on credit)
P 2,600,000
Purchases
1,950,000
Your answer
7. Interpret the given and the cash
conversion cycle. Provide points of
improvement. Be specific. Answer in
three to five sentences.
Your answer
Transcribed Image Text:5. Using the given, compute the cash conversion cycle of the entity. Beginning Ending Average P 300,000 P 350,000 P 325,000 200,000 Trade receivables 800,000 ??? Inventory Trade payables 300,000 ??? 650,000 For the year Sales (all on credit) P 2,600,000 Purchases 1,950,000 Your answer 7. Interpret the given and the cash conversion cycle. Provide points of improvement. Be specific. Answer in three to five sentences. Your answer
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