Calculate the cash conversion cycle for this financial accounting question Sterling Enterprises has the following metrics for 2015:Amount in DaysDays Sales OutstandingPayables Outstanding201542.728.4Days Inventory Outstanding 64.3Calculate the cash conversion cycle for Sterling Enterprises in 2015.

Step 1: Definition of Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) is a financial…

Answered: Sterling Enterprises has the following…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 12P

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FMT Trading Inc. has the following financial data: Annual sales 10,000,000Cost of goods sold 6,000,000Inventory 2,547,945Accounts receivable 1,643,836Accounts payable 1,200,000 a. What is the firm’s cash conversion cycle?b. Provide interpretations of the cash conversion cycle period of the firm.
Computing Cash Conversion Cycle for Two YearsWinnebago Industries has the following metrics for 2015 and 2014. Amounts in days 2015 2014 Days sales outstanding 25.9 19.5 Days inventory outstanding 47.5 49.3 Days payable outstanding 13.9 13.3 Compute the cash conversion cycle for both years. Round answers to one decimal place. Cash conversion cycle 2015 Answer 2014 Answer
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Direct Furnishings Inc. has the following data:Annual sales $10,000,000Cost of goods sold 6,000,000Inventory 2,547,945Accounts receivable 1,643,836Accounts payable 1,200,000What is the firm’s cash conversion cycle?
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calculate cash flow from assets if given year 1: sales=9402, depreciation=1350, costs of good sold=3235, administrative expenses=767, interest expenses=630, cash=4931, accounts receivable=6527, short term notes payable=953, long term debt=16152, net fixed assets=41346, accounts payable=5179, inventory=11604, and dividends=1147 and given year 2: sales=10091, depreciation=1351, costs of good sold=3672, administrative expenses=641, interest expenses=724, cash=6244, accounts receivable=7352, short term notes payable=895, long term debt=19260, net fixed assets=42332, accounts payable=5022, inventory=11926, and dividends=1261 and tax rate is 34%
Quantitative Problem: Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2015 sales (all on credit) were $123,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.52 times during the year. Its receivables balance at the end of the year was $13,118.63 and its payables balance at the end of the year was $7,390.82. Using this information calculate the firm's cash conversion cycle. Do not intermediate calculations. Round your answer to the nearest whole number. days
If the Merchandise inventory account balance on 12/31/19 was 40000 and its account balance on 12/31/20 was 55000, then the effect on cash flows showas which of the following A) Increase by 15000 b) Increase by 40000 C) decrease by 15000 D) decrease by 40000

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Sterling Enterprises has the following metrics for 2015: Amount in Days Days Sales Outstanding Payables Outstanding 2015 42.7 28.4 Days Inventory Outstanding 64.3 Calculate the cash conversion cycle for Sterling Enterprises in 2015.