Explore BrainMass
Share

Amount of total resources Winnepeg Corporation has invested

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Winnepeg Corporation is concerned about managing its operating assets and liabilities efficiently. Inventories have an average age of 110 days, and accounts receivable have an average age of 50 days. Accounts payable are paid approximately 40 days after they arise. The firm has annual sales of $36 million, its cost of goods sold represents 75% of sales, and its purchases represent 70% of cost of goods sold. Assume a 365-day year.
a. Calculate the firm's operating cycle (OC).
b. Calculate the firm's cash conversion cycle (CCC).
c. Calculate the amount of total resources Winnepeg Corporation has invested in its CCC.
d. Discuss how management might be able to reduce the amount of total resources invested in the CCC.

© BrainMass Inc. brainmass.com October 17, 2018, 4:21 am ad1c9bdddf
https://brainmass.com/business/accounting/amount-total-resources-winnepeg-corporation-invested-458505

Solution Preview

Winnepeg Corporation is concerned about managing its operating assets and liabilities efficiently. Inventories have an average age of 110 days, and accounts receivable have an average age of ...

Solution Summary

The following solution discusses the amount of total resources Winnipeg Corporation has invested in its CCC.

$2.19
Similar Posting

Economic impact analysis

I need help finding and defining sources of information for economic impact.

View Full Posting Details