Explore BrainMass

Explore BrainMass

    Important Information About Xtreme Toys

    Not what you're looking for? Search our solutions OR ask your own Custom question.

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

    Xtreme Toys® is a small manufacturing company in Southern California. Management is concerned because as their sales have grown, their cash flow has shrunk. Management doesn't understand how this could happen and has approached your team to find a solution for this dilemma.
    Calculate the following:

    a) Operating cycle
    b) Cash conversion cycle (cash gap)
    If the company's cost of funds is 8%, what is the annual cost of financing the cash gap?

    © BrainMass Inc. brainmass.com March 4, 2021, 8:07 pm ad1c9bdddf


    Solution Summary

    The solution explains how to calculate the operating cycle and cash conversion cycle