XYZ Manufacturing has the following operational data: • Inventory holding period: 35 days • Customer collection period: 25 days Supplier payment period: 20 days Calculate: 1. XYZ's business operating cycle 2. XYZ's cash conversion cycle 3. If XYZ wants to reduce its cash conversion cycle by 15 days, what options does it have?
XYZ Manufacturing has the following operational data: • Inventory holding period: 35 days • Customer collection period: 25 days Supplier payment period: 20 days Calculate: 1. XYZ's business operating cycle 2. XYZ's cash conversion cycle 3. If XYZ wants to reduce its cash conversion cycle by 15 days, what options does it have?
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
Related questions
Question
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Subject: financial accounting
Transcribed Image Text:XYZ Manufacturing has the following operational data:
•
Inventory holding period: 35 days
•
Customer collection period: 25 days
Supplier payment period: 20 days
Calculate:
1. XYZ's business operating cycle
2. XYZ's cash conversion cycle
3. If XYZ wants to reduce its cash conversion cycle by 15 days, what
options does it have?
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