with an average interest rate of 10% per annum. The company gives 60 days credit to its customers and is allowed an average of 30 days credit by trade suppliers. The company has an operating cycle of 90 days. Current ratio of Ait Ltd 1.5:1 and the Cost of long-term finance to Ait Ltd is 12% per annum Calculate the Net working capital of the company

Q: Valenzuela, Incorporated, has a cash cycle of 45.5 days, an operating cycle of 67 days, and an…

A: Operating cycle is calculated by taking the inventory turnover days and the account receivable days…

Q: McEwan Industries sells on terms of 3/10, net 35. Total sales for the year are $1,947,000; 40% of…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: ABCD Corporation has credit sales of $8,460,000 and receivables of $1,260,000. Assume there are 365…

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Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

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Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: the line of credit is a pre-approved limit offered by financial institutions, banks, etc, you can…

Q: Which one of the following statements is correct if a firm has a receivables turnover of 10? It…

A: In this question, we are required to determine the correct statement related to receivables turnover…

Q: Annual credit sales of Nadak Company total $240 million. The firm gives a 2% cash discount for…

A: Annual credit sales$240millionDiscount %2%Discount period10 days% paid within discount period90%

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A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Solution- Interest rate = 6% +4% = 10%   Rate of interest charged each day = 10% / 360 = 0.02778%…

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A: Sales = $83000 Account payable = $30000 Accounts receivable = $25000

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

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A: DatesNo. of…

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.