what is the length of the firm cash conversion cycle ? For the Greenfield Manufacturing Company, the average age ofaccounts receivable is 50 days, the average age of accountspayable is 30 days, and the average age of inventory is 80days. Assuming a 365-day year, what is the length of the firm'scash conversion cycle?Options:a. 90 daysb. 100 daysc. 80 daysd. 75 dayse. 85 days

The Cash Conversion Cycle indicates the duration required for a company to convert its inventory…

Answered: For the Greenfield Manufacturing…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 10QTD

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What is the length of the firm's cash conversion cycle?
еВook Zane Corporation has an inventory conversion period of 90 days, an average collection period of 34 days, and a payables deferral period of 48 days. Assume 365 days in year for your calculations. a. What is the length of the cash conversion cycle? Round your answer to two decimal places. days b. If Zane's annual sales are $3,454,540 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. How many times per year does Zane turn over its inventory? Assume that the cost of goods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio. Do not round intermediate calculations. Round your answer to two decimal places.
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22) A firm has the following data: Inventory conversion period = 75 days Average collection period = 32 days Payables deferral period = 45 days What is the firm's cash conversion cycle? 1. 5 days. 2. 40 days. 3. 62 days. 4. 88 days. 5. 15 days.
Nelson Industries has an inventory conversion period of 45 days, an average collection period of 40 days, and a payables deferral period of 30 days. Assume that cost of goods sold is 75% of sales. Required: a. What is the length of the firm's cash conversion cycle? b. How many times per year does Nelson Industries turn over its inventory? Help me with this
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A firm has an average age of inventory of 65 days, an average collection period of 45 days, and an average payment period of 30 days. The firm's cash conversion cycle is a. 110 days b. 45 days c. 75 days d. 80 days
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A firm has an average age of inventory of 100 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's cash conversion cycle is?
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If a firm has sales of $23,920,000 a year, and the average collection period for the industry is 60 days, what should this firm’s accounts receivable be if the firm is comparable to the industry? Assume there are 365 days in a year. Do not round intermediate calculations. Round your answer to the nearest dollar. $

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