What is the cash conversion cycle? General accounting What is the cash conversion cycle for a firm with $3million average inventories, $1.5 million averageaccounts payable, a receivables period of 40 days, andan annual cost of goods sold of $18 million?

Step 1: Definition of Cash Conversion Cycle (Cash Cycle)The cash conversion cycle measures the time…

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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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What is the cash conversion cycle?
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 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?
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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
Cash conversion cycle? General accounting
Cash conversion cycle?
Suppose a company could invest in a machine that would be able to produce $1,000,000 worth of saleable merchandise in one year, $2,000,000 for another two years then $1,000,000 for another three years. If the required rate of return for the company is 8%, what is the value of the machine's future cash flows to the company today?
Suppose that LilyMac Photography has annual sales of $230,000, cost of goods sold of $165,000, average inventories of $4,500, average accounts receivable of $25,000, and an average accounts payable balance of $7,000.Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
A company is expecting annual cash flows of $10,000 in years 6 to 10; $20,000 annually in years 11 to 20; and $40,000 in years 21 to 30. Given a nominal rate of 4.25% compounded semi-annually, determine the net present value of the cash flows. When entering your answer, round your values to the nearest dollar, and use a $ symbol, as well as the correct comma separator. For example $234,567 Answer: A company is expecting annual cash flows of $10,000 in years 6 to 10; $20,000 annually in years 11 to 20; and $40,000 in years 21 to 30. Given a nominal rate of 4.25% compounded semi-annually, determine the net future value of the cash flows. When entering your answer, round your values to the nearest dollar, and use a $ symbol, as well as the correct comma separator. For example $234,567 Answer:
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What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 million?