a)
To determine: Net working capital for the year 2015.
Introduction:
Net working capital is the difference between the net current assets and the net current liabilities of the firm.
b)
To determine: The cash conversion cycle of G Company in the year 2015.
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.
c)
To determine: The cash conversion cycle when the accounts receivable days are 30 days in addition to the COGS in 2015.
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.
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Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
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