do fast answer of this General Accounting Question Summit Construction has the following working capitalmetrics:.Average days to collect payments from customers(DSO): 45 daysAverage days inventory is held (DIO): 52 daysAverage days to pay suppliers (DPO): 38 days Howdoes Summit's cash conversion cycle compare to theindustry average of 65 days?

Given:DSO (Days sales outstanding) = 45 daysDPO (Days payable outstanding) = 38 daysDIO (Days…

Answered: Summit Construction has the following…

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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ML has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days 34 days 46 days 31 days 38 days O 42 days
A firm with a cash conversion cycle of 40 days can stretch its average payment period from 15 days to 20 days. This will result in a/an ... O a. decrease of 20 days in the cash conversion cycle. b. decrease of 5 days in the cash conversion cycle. increase of 5 days in the cash conversion cycle. X Od. increase of 20 days in the cash conversion cycle. C. Which of the following in
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Cass & Company has the following data. What is the firm's cash conversion cycle? Inventory Conversion Period = 40 days Receivables Collection Period = 17 days Payables Deferral Period = 25 days Question options: 35 days 31 days 25 days 32 days 33 days
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Provided the following information: Sales =$1,440,000, Cost of Goods Sold= $1,100,000, Inventory=$200,000, Receivables=$160,000, Payables=S100,000 and there are 365 days in a year. What is the cash conversion cycle for the firm? a. 113.55 Days b. 77.05 Days c. 150.05 Days d. 73 Days e. None of the above
A firm has an average age of inventory of 100 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's cash conversion cycle is?
2
(Cash conversion cycle) Historical data for the firm's sales, accounts receivable, inventories, and accounts payable for the Crimson Mfg. Company follow: a. Calculate Crimson's days of sales outstanding, days of payables outstanding, and days of sales in inventory for each of the 5 years. (Assume a 365-day year. Hint: Assume that the firm's cost of goods sold equals 70% of sales.) What has Crimson accomplished in its atempts to better manage its investments in account receivable and inventory? b. Calculate Crimson's cash conversion cycle for each of the 5 years. Evaluate the firm's overall management of its working capital. Assume a 365-day year. a. Calculate Crimson's days of sales outstanding, days of payables outstanding, and days of sales in inventory for each of the 5 years. Assume a 365-day year. Hint: Assume that the firm's cost of goods sold equals 70% of sales. (Round to two decimal places.) Days of sales outstanding (DSO) Data table 2014 Sales Net Receivables-Total Acounts…
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Consider the following cash flows: Year Cash Flow 0 –$7,400 1 2,100 2 4,700 3 1,900 4 1,600 What is the payback period for the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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