loader  Loading... Please wait...

Question(s) / Instruction(s):

STEP BY STEP  

Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm’s cash conversion cycle. Using the following information and a 365-day year, what is the firm’s present cash conversion cycle?

 

Average inventory = $75,000

 

Annual sales = $600,000

 

Annual cost of goods sold = $360,000

 

Average accounts receivable = $160,000

 

Average accounts payable = $25,000

 

a. 120.6 days

 

b. 126.9 days

 

c. 133.6 days

 

d. 140.6 days

 

e. 148.0 days

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$1.79

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)

You Recently Viewed...



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494