Question # 1: During the year the following changes were observed. (I.) Inventory period increased by 12 days (II.) Receivables period decreased by 6 days (III.) Accounts payable period increased by 4 days Find the net change in cash conversion cycle
Question # 1: During the year the following changes were observed. (I.) Inventory period increased by 12 days (II.) Receivables period decreased by 6 days (III.) Accounts payable period increased by 4 days Find the net change in cash conversion cycle
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question # 1:
During the year the following changes were observed.
(I.) Inventory period increased by 12 days
(II.) Receivables period decreased by 6 days
(III.) Accounts payable period increased by 4 days
Find the net change in cash conversion cycle
A firm has Rs. 50 million and Rs. 60 million credit sales during the first two quarters of the year. 70% of the account receivables are collected in the same quarter and the balance in the next quarter. What will be the total collection for the firm in the second quarter?
If a firm determined to increase its collection from its clients by diminishing the receivables period and held in reserve the payable period and inventory period the same. Briefly explain its effect.
The extent of the financing is directly correlated to the useful life of an asset being financed, justify.
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