As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $23.6 million, cost of goods sold of $19.5 million, 50 operating weeks a year, total average on-hand inventory of $2,300,000, accounts receivable equal to $2,440,000, and accounts payable of $3,710,000. What is the cash-to-cash conversion cycle in weeks? D not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- inventory weeks of supply and -Select- ✓accounts receivable weeks of supply or -Select- ✓accounts payable weeks of supply are ways to improve overall firm performance.
As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $23.6 million, cost of goods sold of $19.5 million, 50 operating weeks a year, total average on-hand inventory of $2,300,000, accounts receivable equal to $2,440,000, and accounts payable of $3,710,000. What is the cash-to-cash conversion cycle in weeks? D not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- inventory weeks of supply and -Select- ✓accounts receivable weeks of supply or -Select- ✓accounts payable weeks of supply are ways to improve overall firm performance.
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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![As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $23.6 million, cost of goods sold of $19.5 million, 50 operating weeks a year, total average on-hand inventory of $2,300,000, accounts receivable equal to $2,440,000, and accounts payable of $3,710,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place.
[Text Box] week(s)
What recommendations can you make to improve performance?
[Dropdown] inventory weeks of supply and [Dropdown] accounts receivable weeks of supply or [Dropdown] accounts payable weeks of supply are ways to improve overall firm performance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc00f41a8-3019-411c-9841-b4d3b90602dd%2Ffe53cdf7-8028-452d-997c-7ee5e13af482%2Feupd8fd_processed.png&w=3840&q=75)
Transcribed Image Text:As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $23.6 million, cost of goods sold of $19.5 million, 50 operating weeks a year, total average on-hand inventory of $2,300,000, accounts receivable equal to $2,440,000, and accounts payable of $3,710,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place.
[Text Box] week(s)
What recommendations can you make to improve performance?
[Dropdown] inventory weeks of supply and [Dropdown] accounts receivable weeks of supply or [Dropdown] accounts payable weeks of supply are ways to improve overall firm performance.
Expert Solution
Step 1: Formula.
Cash to Cash conversion cycle is computed by following formula:-
Cash to Cash conversion cycle (in weeks )
= inventory weeks of supply+accounts receivable weeks of supply-accounts payable weeks of supply.
Step by step
Solved in 7 steps with 6 images
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