SkyTune Audio Ltd. has forecasted sales of $40,000,000 for the next year and expects its cost of goods sold (COGS) to be 75% of sales. The company currently holds: Inventories = $3,600,000 . . Accounts Receivable = $2,800,000 Accounts Payable = $2,900,000 Approximately how long does it take SkyTune Audio Ltd. to convert its raw materials to finished products and then sell those goods (Cash Conversion Cycle)? (Assume 365 days in a year.)

SkyTune Audio Ltd. has forecasted sales of $40,000,000 for the next year and expects its cost of goods sold (COGS) to be 75% of sales. The company currently holds: Inventories = $3,600,000 . . Accounts Receivable = $2,800,000 Accounts Payable = $2,900,000 Approximately how long does it take SkyTune Audio Ltd. to convert its raw materials to finished products and then sell those goods (Cash Conversion Cycle)? (Assume 365 days in a year.)

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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