ABC Corp. pays for its purchases 20 days after goods are received. On the average , goods are sold 10 days after they are received and collections are made 23 days from date of sale. a) Determine the length of cash cycle. b) Assuming that ABC corp. have its minimum cash balance equal to a 10 days requirement and annual cash requirement is P 850,000. Compute for the minimum cash balance for ABC
ABC Corp. pays for its purchases 20 days after goods are received. On the average , goods are sold 10 days after they are received and collections are made 23 days from date of sale. a) Determine the length of cash cycle. b) Assuming that ABC corp. have its minimum cash balance equal to a 10 days requirement and annual cash requirement is P 850,000. Compute for the minimum cash balance for ABC
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
Section: Chapter Questions
Problem 1PS
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ABC Corp. pays for its purchases 20 days after goods are received. On the average , goods are sold 10 days after they are received and collections are made 23 days from date of sale.
a) Determine the length of cash cycle.
b) Assuming that ABC corp. have its minimum cash balance equal to a 10 days requirement and annual cash requirement is P 850,000. Compute for the minimum cash balance for ABC
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