American Products is concerned about managing cash efficiently. On the? average, inventories have an age of 8484 ?days,...

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Finance

American Products is concerned about managing cash efficiently.On the? average, inventories have an age of
8484
?days, and accounts receivable are collected in
3939
days. Accounts payable are paid approximately
3333
days after they arise. The firm has annual sales of about
?$3737
million. Cost of goods sold are
?$2020
?million, and purchases are
?$1616
million.
a.??Calculate the? firm's operating
cycle.
b.??Calculate the? firm's cash conversion
cycle.
c.??Calculate the amount of resources needed to support the?firm's cash conversion cycle.
d.??Discuss how management might be able to reduce the cashconversion cycle.
a. American? Products' operating? cycle, OC, is
nothing
days.???(Round to the nearest whole? number.)

Answer & Explanation Solved by verified expert

4.4 Ratings (645 Votes)

aCalculate the firms operating cycle Firms operating cycle days in inventory days receivables 84 39 123 days bCalculate the firms cash conversion cycle Firms cash See Answer

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