Need help with this question solution general accounting Delmar Manufacturing has the following operational metrics:Days Inventory Outstanding: 35.2 days⚫ Days Sales Outstanding: 28.6 daysDays Payables Outstanding: 42.5 daysWhat is Delmar's cash conversion cycle?A. 21.3 daysB. 106.3 daysC. 63.8 daysD. 49.1 days

Step 1: Definition of Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) is a key metric…

Answered: Delmar Manufacturing has the following…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 12P

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ABC Inc. has the following data. What is the firm's cash (conversion) cycle? Inventory Conversion Period = 38 days Receivables Collection Period = 19 days Payables Deferral Period = 26 days
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Cash conversion cycle is how many days
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Calculate the average collection period, average payment period, inventory turnover period and cash conversion cycle for the following firm (1Year = 360 Days): Income statement data: Sales 10000, COGS 9000 Balance sheet data: Inventory 1100, Accounts receivable 400, Accounts payable 600 What effect will all the following activities have on the cash conversion cycle? the company reduces the level of inventory by 10%, the company changes the terms of sale and 60% of customers pay after 5 days while the remaining pay after 30 days (with sales on the same level) and the company has extended its own payment conditions by one week.
Subject: financial accounting
Captain Kurt's Enterprises has a receivables turnover rate of 12.8, a payables turnover rate of 11.9, and an inventory turnover rate of 15.6. What is the length of the firm's operating cycle? a. 24.89 days b. 39.80 days c. 51.92 days d. 62.56 days e. 83.77 days
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The Zocco Corporation has an inventory conversion period of 60 days, an average of collection period of 38 days, and a payable deferral period of 30 days. Assume that cost of goods sold 75% of sales. a. What is the length of the firm’s cash conversion cycle? a. Zocco’s annual sales are $3,421,875 and all sales are on credit, what is the firm’s investment in accounts receivable? b. How many times per year does Zocco turn over its inventory?

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Delmar Manufacturing has the following operational metrics: Days Inventory Outstanding: 35.2 days ⚫ Days Sales Outstanding: 28.6 days Days Payables Outstanding: 42.5 days What is Delmar's cash conversion cycle? A. 21.3 days B. 106.3 days C. 63.8 days D. 49.1 days