Need help with this accounting questions A company plans to make changes to increase sales. It willincrease inventory by $40,000, and average receivables willrise to $120,000. These changes are expected to boost salesto $1,200,000 per year, with cost of goods staying at 75% ofsales. Due to increased production needs, average payableswill increase to $70,000. What effect will these changes haveon the firm's cash conversion cycle? (use 365 days in year)

Step 1: Definition of Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) measures the time…

Answered: A company plans to make changes to…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 27P

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