What is your firm's cash conversion cycle? Round to the nearest day. Your boss at LK Enterprises asks you to compute thecompany's cash conversion cycle. Looking at thefinancial statements, you see that the averageinventory for the year was $135,500, accountsreceivable were $102,400, and accounts payable wereat $121,700. You also see that the company had salesof $356,000 and that cost of goods sold was $298,500.What is your firm's cash conversion cycle? Round tothe nearest day.

The CCC measures how long it takes a company to turn its investments in inventory and receivables…

Answered: Your boss at LK Enterprises asks you to…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 10P

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Dreamz Unlimited INC has accounts payable days of 30 , inventory days of 60 , and accounts receivable days of 35 . What is its Cash conversion cycle?
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Provided the following information: Sales =$1,440,000, Cost of Goods Sold= $1,100,000, Inventory=$200,000, Receivables=$160,000, Payables=S100,000 and there are 365 days in a year. What is the cash conversion cycle for the firm? a. 113.55 Days b. 77.05 Days c. 150.05 Days d. 73 Days e. None of the above
See the cash flow statement LOADING... (all values in thousands of dollars) (see MyLab Finance for the data in Excel format): a. What were the company's cumulative earnings over these four quarters? What were its cumulative cash flows from operating activities? b. What fraction of the cash from operating activities was used for investment over the four quarters? c. What fraction of the cash from operating activities was used for financing activities over the four quarters? a. What were the company's cumulative earnings over these four quarters? The cumulative earnings were $enter your response here (000). (Round to the nearest integer.) Part 2 What were its cumulative cash flows from operating activities? The cumulative cash flows from the operating activities were $enter your response here (000). (Round to the nearest integer.) b. What fraction of the cash from operating activities was used for investment over the four quarters? The fraction of the cash from operating…
Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
Capstone Turbine Corporation produces and sells turbine generators for such applications as charging electric, hybrid vehicles. Capstone Turbine reported the following financial data for a recent year (in thousands): Net cash flows from operating activities $(23,018) Cash and cash equivalents 32,221 a. Determine the monthly cash expenses. Round to one decimal place.b. Determine the ratio of cash to monthly cash expenses. Round to one decimal place.c. Based on your analysis, do you believe that Capstone Turbine will remainin business?
What is the length of the firm's cash conversion cycle on these financial accounting question?
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For the following income statement summary, calculate the cumulative cash flow. You can do it in Excel and paste the result below. Year 0 1 2 3 4 5 Unit Price $105 $110 $115 $120 $125 Units Sold Net Sales 900 1000 1100 1200 1300 Cost of Sales $54,000 $60,000 $66,000 $15,000 $15,750 $16,538 $17,364 $18,233 $13,000 $13,000 $13,000 $13,000 $13,000 $72,000 $78,000 Fixed Costs Depreciation PBIT Tax@40% NOPAT Adjustments Add back Depreciation CapEx ($100,00 0) Salvage value Net cash flow Cumulative cash flow $40,000
what is the cash flow cycle?

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