Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. multiple changes in cash conversion cycle garrett

Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 6 times each...

80.2K

Verified Solution

Question

Finance

image
Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 6 times each year it has an average collection period of 43 days and a average payment period of 32 days. The firm's annual sales are $3.3million Assume there is no difference in the investment per dollar of sales in inventory. recelvables, and payables: and a 365 -day year. a. Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle b. Find the firm's cash conversion cycle and resource investment requirement if it makes the following changes simutaneously. (1) Shortens the average age of inventory by 4 days. (2) Speeds the collection of accounts recelvable by an average of 8 days. (3) Extends the average payment period by 8 days. c. It the firm pays 12% for its resource investment, by how much, If anything, could it increase its annual proft as a result of the changes in part b? d. If the annual cost of achleving the profit in part c is $34,000, what action would you recommend to the firm? Wby? a. The firmis cash conversion cycle, CCC, is days. (Round to the nearest whole day.)

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

Q

3 Find the exact value of the real number y Do not use a calculator...

Geometry
Q

Draw a bag diagram to illustrate the following set and find its cardinal number 0...

Basic Math
Q

7 O No Solution y 8 10 9 8 7 6 5 4 3 2...

Basic Math
Q

Round to the nearest whole number Angle C C 24 26 A 103 6 B

Basic Math
Q

Question 4 of 8Determine whether the graph of the below equation is symmetric with respect...

Basic Math
Q

The set of solutions to = ?2-??2i ismi {e = = *OriO, e 28mi2171528mi{e="?e?e,e,e#",e#"}mi:e...

Algebra
Q

PB7-1 Analyzing the Effects of Four Alternative Inventory Methods in a Periodic Inventory System (LO...

Accounting
Q

High Desert Potteryworks makes a variety of pottery products that it sells to retailers such...

Accounting
Q

Which is true about Chapter 7 bankruptcies? Group of answer choices All dischargeable debts will...

Accounting
Q

Prior to closing, Syracuse Company's accounting records showed the following balances: Service revenue Interest revenue...

Accounting
Q

Binomial Solutions Inc (BSI) is a financial software company. Its asset has a current market...

Finance
Q

sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance...

Accounting