The Hedge Company has an average age of inventory of 65 days, an average collection period of 60 days and an average payment period of 65 days. The firm's total annual outlays for operating cycle investments are R3.65 million. Assuming a 365-day year, how much negotiated financing is required to support it cash conversion cycle?
The Hedge Company has an average age of inventory of 65 days, an average collection period of 60 days and an average payment period of 65 days. The firm's total annual outlays for operating cycle investments are R3.65 million. Assuming a 365-day year, how much negotiated financing is required to support it cash conversion cycle?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The Hedge Company has an average age of inventory of 65 days, an average collection period of 60 days and an average payment period of 65 days. The firm's total annual outlays for operating cycle investments are R3.65 million. Assuming a 365-day year, how much negotiated financing is required to support it cash conversion cycle?
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