Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
Question
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Chapter 26, Problem 15P

a)

Summary Introduction

To determine: Cash conversion cycle for IM Corporation for the year 2012 and 2013.

Introduction:

Cash cycle is also termed as cash conversion cycle, which measures the time taken to convert the cash into stocks, accounts payable by way of sales and accounts receivables and again back to cash.

Summary Introduction

To discuss: The change in the cash conversion cycles and how IM Corporation’s cash gets affected by these changes.

b)

Summary Introduction

To discuss: The suppliers of IM Corporations offers terms of Net 30 and whether the IM Corporations action on managing the accounts payable is good.

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