Question (6) Post Company's 20Y1 net sales were $10,000,000, cash cost of goods sold was $5,500,000, and inventory days on hand was 62 days. The company projects its 20Y2 net sales will be $11,000,000, cash cost of goods sold will be $6,100,000, and inventory days on hand will be 57 days. What would be the cash flow impact of the five-day shortening of inventory days on hand? OA decrease of $75,342. O An increase of $75,342. OA decrease of $83,562. O An increase of $83,562.
Question (6) Post Company's 20Y1 net sales were $10,000,000, cash cost of goods sold was $5,500,000, and inventory days on hand was 62 days. The company projects its 20Y2 net sales will be $11,000,000, cash cost of goods sold will be $6,100,000, and inventory days on hand will be 57 days. What would be the cash flow impact of the five-day shortening of inventory days on hand? OA decrease of $75,342. O An increase of $75,342. OA decrease of $83,562. O An increase of $83,562.
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 3MC
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![Question (6)
Post Company's 20Y1 net sales were $10,000,000, cash cost of goods sold was $5,500,000, and inventory days on hand was 62 days. The company projects its 20Y2 net sales will be
$11,000,000, cash cost of goods sold will be $6,100,000, and inventory days on hand will be 57 days. What would be the cash flow impact of the five-day shortening of inventory days
on hand?
OA decrease of $75,342.
O An increase of $75,342.
OA decrease of $83,562.
O An increase of $83,562.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F19c8d878-83bb-46a2-94cc-26fba2762c0d%2Fb8900c07-0b80-4954-be09-bd1d73ba89fb%2Fuwewgr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question (6)
Post Company's 20Y1 net sales were $10,000,000, cash cost of goods sold was $5,500,000, and inventory days on hand was 62 days. The company projects its 20Y2 net sales will be
$11,000,000, cash cost of goods sold will be $6,100,000, and inventory days on hand will be 57 days. What would be the cash flow impact of the five-day shortening of inventory days
on hand?
OA decrease of $75,342.
O An increase of $75,342.
OA decrease of $83,562.
O An increase of $83,562.
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