The following information is given to you about a manufacturing business: The days sale of inventory, DSI = 44 days The days sale outstanding. DSO = 38 days The days payables outstanding, DPO = 53 days The markup policy aplies 20% on cost to determine the sale price ofa piece of inventory. All sales are credit sales: vendors also supply on credit basis. The operating capital is borrowed at an interest rate of 37% and the annual days of operations is 346. (1) The cash conversion cycle, CCC = (2) The annual rate of return on capital AFTER interest is days (Round TWO places of decimal) ]% (Round TWO places of decimal)

The following information is given to you about a manufacturing business: The days sale of inventory, DSI = 44 days The days sale outstanding. DSO = 38 days The days payables outstanding, DPO = 53 days The markup policy aplies 20% on cost to determine the sale price ofa piece of inventory. All sales are credit sales: vendors also supply on credit basis. The operating capital is borrowed at an interest rate of 37% and the annual days of operations is 346. (1) The cash conversion cycle, CCC = (2) The annual rate of return on capital AFTER interest is days (Round TWO places of decimal) ]% (Round TWO places of decimal)

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 2P: Medwig Corporation has a DSO of 17 days. The company averages 3,500 in sales each day (all customers...

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