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    Working Capital and Cash Conversion Cycle

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    The Greek Connection
    Balance Sheet
    As of December 31, 2004
    (thousands of dollars)

    Assets Liabilities and Equity
    Cash $2,000 Account payable $1,500
    Account receivable $3,950 Notes payable $1,000
    Inventory $1,300 Accruals $1,220
    Total current assets $7,250 Total current liabilities $3,720

    Net plant, property Long -term debt $3,000
    and equipment $8,500 Total liabilities $6,720
    Total assets $15,750 common equity $9,030
    total liabilities and equity $15,750

    Complete Chapter 26, problem 4-a on page 846. Enter your answer for the following:
    The Greek Connection's net working capital in 2004 is ch
          
    $3,350
          
    $5,350
          
    $3,550
          
    $3,530
          
    $4,530

    2. Complete Chapter 26, problem 4-b on page 846. Enter your answer for the following:

    Cash conversion cycle (CCC) of The Greek Connection in 2004 is
          
    23.7 days
          
    41.4 days
          
    27.4 days
          
    45.4 days
          
    26.3 days

    3. Complete Chapter 26, problem 4-c on page 846. Enter your answer for the following:

    What would the cash conversion cycle for The Greek Connection have been in 2004 had it met the industry average for accounts receivable days?
          
    23.7 days
          
    41.4 days
          
    27.4 days
          
    45.1 days
          
    26.3 days

    © BrainMass Inc. brainmass.com June 3, 2020, 10:43 pm ad1c9bdddf
    https://brainmass.com/business/business-math/working-capital-and-cash-conversion-cycle-246356

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    Solution Summary

    This solution explains how to calculate net working capital and the cash conversion cycle of a company.

    $2.19

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