Homework Help is Here – Start Your Trial Now!
Business
Accounting
Azure Manufacturing wishes to evaluate its cash conversion cycle (CCC). Research by one of the firm's financial analysts indicates that on average the firm holds items in inventory for 72 days, pays its suppliers 42 days after purchase, and collects its receivables after 60 days. The firm's annual sales (all on credit) are about R2.5 billion, its cost of goods sold represents about 70 percent of sales, and purchases represent about 45 percent of the cost of goods sold. Assume a 365-day year. What is Azure Manufacturing's cash conversion cycle (CCC)?

Azure Manufacturing wishes to evaluate its cash conversion cycle (CCC). Research by one of the firm's financial analysts indicates that on average the firm holds items in inventory for 72 days, pays its suppliers 42 days after purchase, and collects its receivables after 60 days. The firm's annual sales (all on credit) are about R2.5 billion, its cost of goods sold represents about 70 percent of sales, and purchases represent about 45 percent of the cost of goods sold. Assume a 365-day year. What is Azure Manufacturing's cash conversion cycle (CCC)?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
See similar textbooks
icon
Related questions
Question

??

Azure Manufacturing wishes to evaluate its cash conversion cycle (CCC). Research by one of the firm's financial analysts indicates that on average the firm holds items in inventory for 72 days, pays its suppliers 42 days after purchase, and collects its receivables after 60 days. The firm's annual sales (all on credit) are about R2.5 billion, its cost of goods sold represents about 70 percent of sales, and purchases represent about 45 percent of the cost of goods sold. Assume a 365-day year. What is Azure Manufacturing's cash conversion cycle (CCC)?
Transcribed Image Text:Azure Manufacturing wishes to evaluate its cash conversion cycle (CCC). Research by one of the firm's financial analysts indicates that on average the firm holds items in inventory for 72 days, pays its suppliers 42 days after purchase, and collects its receivables after 60 days. The firm's annual sales (all on credit) are about R2.5 billion, its cost of goods sold represents about 70 percent of sales, and purchases represent about 45 percent of the cost of goods sold. Assume a 365-day year. What is Azure Manufacturing's cash conversion cycle (CCC)?
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS