Loud Noise Recordings Corporation has forecasted sales of $30,000,000 for next year and expects its cost of goods sold (COGS) to remain at 80% of sales. Currently, the firm holds $3,200,000 in inventories, $2,300,000 in accounts receivable, and $2,600,000 in accounts payable. On average, it takes from the time a sale is made until the time cash is collected from customers: a. 29.38 days b. 27.98 days c. 30.78 days d. 20.99 days

Loud Noise Recordings Corporation has forecasted sales of $30,000,000 for next year and expects its cost of goods sold (COGS) to remain at 80% of sales. Currently, the firm holds $3,200,000 in inventories, $2,300,000 in accounts receivable, and $2,600,000 in accounts payable. On average, it takes from the time a sale is made until the time cash is collected from customers: a. 29.38 days b. 27.98 days c. 30.78 days d. 20.99 days

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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