Echo Sound Systems has forecasted sales of $60,000,000 for next year and expects its cost of goods sold (COGS) to remain at 70% of sales. Currently, the firm holds $5,000,000 in inventories, $4,500,000 in accounts receivable, and $4,000,000 in accounts payable. What is the length of Echo Sound Systems' cash conversion cycle (CCC)?
Echo Sound Systems has forecasted sales of $60,000,000 for next year and expects its cost of goods sold (COGS) to remain at 70% of sales. Currently, the firm holds $5,000,000 in inventories, $4,500,000 in accounts receivable, and $4,000,000 in accounts payable. What is the length of Echo Sound Systems' cash conversion cycle (CCC)?
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
Related questions
Question
I am searching for the accurate solution to this financial accounting problem with the right approach.
Transcribed Image Text:Echo Sound Systems has forecasted sales of $60,000,000 for next year and expects
its cost of goods sold (COGS) to remain at 70% of sales. Currently, the firm holds
$5,000,000 in inventories, $4,500,000 in accounts receivable, and $4,000,000 in
accounts payable.
What is the length of Echo Sound Systems' cash conversion cycle (CCC)?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT