The cash conversion cycle of Corporation C. Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

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Chapter 16, Problem 7P

a.

Summary Introduction

To Determine: The cash conversion cycle of Corporation C.

Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

b.

Summary Introduction

To Determine: The total assets turnover and ROA.

c.

Summary Introduction

To Determine: The cash conversion cycle, total assets turnover and ROA.

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CASH CONVERSION CYCLE Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastain’s 2018 sales (all on credit) were $121,000, its cost of goods sold is 80% of sales, and it earned a net profit of 2%, or $2,420. It turned over its inventory 7 times during the year, and its DSO was 37 days. The firm had fixed assets totaling $42,000. Chastain’s payables deferral period is 35 days. a. Calculate Chastain’s cash conversion cycle. b. Assuming Chastain holds negligible amounts of cash and marketable securities, calcu-late its total assets turnover and ROA.

Cash conversion cycle Christie Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Christie's 2012 sales (all on credit) were $287,000; its cost of goods sold is 80% of sales; and it earned a net profit of 8%, or $22,960. It tumed over its inventory 5 times during the year, and its DSO was 39 days. The firm had fixed assets totaling $40,000. Christie's payables deferral period is 50 days. Assume 365 days in year for your calculations. a. Calculate Christie's cash conversion cyde. Round your answer to two decimal places. days b. Assuming Christie holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Round your answer to two decimal places. Total assets %24 ROA c. Suppose Christle's managers believe that the inventory turnover can be raised to 8.4 times. What would Christie's cash conversion cyde, total assets turnover, and ROA have been if the…

Cash conversion cycle Christie Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Christie's 2012 sales (all on credit) were $287,000; its cost of goods sold is 80% of sales; and it earned a net profit of 8%, or $22,960. It tumed over its inventory 5 times during the year, and its DSO was 39 days. The firm had fixed assets totaling $40,000. Christie's payables deferral period is 50 days. Assume 365 days in year for your calculations. a. Calculate Christie's cash conversion cyde. Round your answer to two decimal places. days b. Assuming Christie holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Round your answer to two decimal places. Total assets ROA t. Suppose Christle's managers belleve that the inventory turnover can be raised to 8.4 times. What would Christie's cash conversion cyde, total assets turnover, and ROA have been iF the Inventory…

Answer 2

Question

Chapter 16, Problem 7P

a.

Summary Introduction

To Determine: The cash conversion cycle of Corporation C.

Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

b.

Summary Introduction

To Determine: The total assets turnover and ROA.

c.

Summary Introduction

To Determine: The cash conversion cycle, total assets turnover and ROA.

Expert Solution & Answer

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Answer 3

Question

Chapter 16, Problem 7P

a.

Summary Introduction

To Determine: The cash conversion cycle of Corporation C.

Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

b.

Summary Introduction

To Determine: The total assets turnover and ROA.

c.

Summary Introduction

To Determine: The cash conversion cycle, total assets turnover and ROA.

Expert Solution & Answer

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Answer 4

Question

Chapter 16, Problem 7P

a.

Summary Introduction

To Determine: The cash conversion cycle of Corporation C.

Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

b.

Summary Introduction

To Determine: The total assets turnover and ROA.

c.

Summary Introduction

To Determine: The cash conversion cycle, total assets turnover and ROA.

Expert Solution & Answer

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Answer 5

Chapter 16, Problem 7P

a.

Summary Introduction

To Determine: The cash conversion cycle of Corporation C.

Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

b.

Summary Introduction

To Determine: The total assets turnover and ROA.

c.

Summary Introduction

To Determine: The cash conversion cycle, total assets turnover and ROA.

Answer 6

Chapter 16, Problem 7P

a.

Summary Introduction

To Determine: The cash conversion cycle of Corporation C.

Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

Answer 7

Chapter 16, Problem 7P

a.

Summary Introduction

To Determine: The cash conversion cycle of Corporation C.

Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

Answer 8

b.

Summary Introduction

To Determine: The total assets turnover and ROA.

Answer 9

b.

Summary Introduction

To Determine: The total assets turnover and ROA.

Answer 10

c.

Summary Introduction

To Determine: The cash conversion cycle, total assets turnover and ROA.

Answer 11

c.

Summary Introduction

To Determine: The cash conversion cycle, total assets turnover and ROA.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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The cash conversion cycle of Corporation C. Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

Solution Summary: The author explains the cash conversion cycle of Corporation C, which measures the time it takes an organization to change over its investment in inventory and other asset contributions to money.

To Determine: The cash conversion cycle of Corporation C.

Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

To Determine: The total assets turnover and ROA.

To Determine: The cash conversion cycle, total assets turnover and ROA.

Want to see the full answer?

Chapter 16 Solutions

The cash conversion cycle of Corporation C. Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

Solution Summary: The author explains the cash conversion cycle of Corporation C, which measures the time it takes an organization to change over its investment in inventory and other asset contributions to money.

To Determine: The cash conversion cycle of Corporation C. Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.

To Determine: The total assets turnover and ROA.

To Determine: The cash conversion cycle, total assets turnover and ROA.

Want to see the full answer?

Chapter 16 Solutions

To Determine: The cash conversion cycle of Corporation C.

Introduction: The cash conversion cycle is a cash flow estimation that endeavours to quantify the time it takes an organization to change over its investment in inventory and other asset contributions to money.