I’m trying to understand a couple of things about FreshHarvest Grocers and some market trends. First, FreshHarvest Grocers, a grocery chain that focuses on fresh, local, and sustainable products, has an inventory turnover of 15 and an accounts payable period of 52 days. Their daily credit sales are $5,000, with an average accounts receivable of $180,000. With a 360-day year, how would I go about calculating their cash cycle? And on a different note, I read that over the last 20 years, small-company stocks in the U.S. have consistently outperformed large-company stocks. Do you think this trend is likely to continue every year going forward? I'd love to hear your thoughts on why or why not.

I’m trying to understand a couple of things about FreshHarvest Grocers and some market trends. First, FreshHarvest Grocers, a grocery chain that focuses on fresh, local, and sustainable products, has an inventory turnover of 15 and an accounts payable period of 52 days. Their daily credit sales are $5,000, with an average accounts receivable of $180,000. With a 360-day year, how would I go about calculating their cash cycle? And on a different note, I read that over the last 20 years, small-company stocks in the U.S. have consistently outperformed large-company stocks. Do you think this trend is likely to continue every year going forward? I'd love to hear your thoughts on why or why not.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

How would we go about answering these questions? I am confused as to what these questions are exactly asking.
Knight Roundtable Co. had annual credit sales of $1,080,000 and an average collection period of 32 days in 2018. Assume a 360-day year. What were the company’s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period. Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 49,000 units per year, an ordering cost of $8 per order, and carrying costs of $1.60 per unit.
What will be the firm's oprating cycle .general accounting
I started this question, but I got stuck. Can someone help me?
A CARDBOARD BOX FACTORY pays its suppliers 40 days after making the purchase and receiving the goods. The average collection period is 45 days, i.e. its customers settle their debt with the company in that time; and the average inventory age is based on the inventory turnover which is 10 times a year. The company spends about $1.23 million in operating cycle investments. With this data we need to calculate: The operating cycle.The cash conversion cycle.The cash turnover.The minimum cash balance.You plan to make modifications to your policies so that you can decrease your PPC by 10 days, and decrease your EPI by 2 times (before converting it to days). Negotiations with your supplier have been unsuccessful and the payment term has been reduced by 10 days. With these data you have to calculate: Re-calculate the Operating Cycle, the SCC, RC and SMC introducing the proposed changes.Calculate the opportunity cost that the changes will cause, if the company's interest rate is 8%.
A company is launching a new sales initiative and expects sales of $446,838 during the first year, and the gross profit margin to be 25%. To prepare for this, they plan to acquire 49 days worth of inventory. Their vendor will allow 48 days to pay its invoices. The company plans to sell only on account to its customers, so sales will be entirely credit based, and the average invoice is expected to take 44 days to collect. What amount of net working capital should be included in the initial investment? Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234 Type your answer...
Vanity Press, Inc., has annual credit sales of $1.9 million and a gross profit margin of 35 percent. Round your answers to the nearest dollar. If the firm wishes to maintain an average collection period of 60 days, what level of accounts receivable should it carry? (Assume a 365-day year.) $ The inventory turnover for this industry averages seven times. If all of Vanity’s sales are on credit, what average level of inventory should the firm maintain to achieve the same inventory turnover figure as the industry? $
What is the maximum inventory of croissants held in a given ordering cycle of this financial accounting question?
Want to give you a correct answer
What will be the firm's operating cycle?
What is their collection period??
Use the following information to answer questions 19 through 30: Currently, OET Corporation sells 350,000 units of widgets a month at a price of $21 a unit. The company currently has a net 30 credit policy. Mr. Ent, the company's financial manager, is evaluating a new credit policy of net 60 for the company. The marketing manager thinks that sales would increase by 10,000 units per month if the company were to switch to the new credit policy. The APR for OET is 13% compounded monthly, and its variable cost per widget is $12. Ignore taxes. Tomorrow, Mr. Ent will be making a presentation on the new proposed credit policy to the CEO of OET. He will be expected to provide answers to the following questions Describe how you would calculate the net present value of the proposed credit policy switch.