Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. mc.16.046 question 19 of 50 monar inc.'s cfo would

MC.16.046 Question 19 of 50 Monar Inc.'s CFO would like to decrease its cash conversion...

60.1K

Verified Solution

Question

Finance

image

MC.16.046 Question 19 of 50 Monar Inc.'s CFO would like to decrease its cash conversion cycle by 10 days (based on a 365 day year). The company carries average inventory of $750,000. Its annual sales are $10 million, its cost of goods sold is 75% of annual sales, and its average collection period is twice as long as its inventory conversion period. The firm buys on terms of net 30 days, and it pays on time. The CFO believes he can reduce the average inventory to $647,260 with no effect on sales. By how much must the firm also reduce its accounts receivable meet its goal in the reduction of the cash conversion cycle? O a $151,027 O b. $123,630 O c $130,137 O d. $136,986 O e $143,836

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students