Purchase Solution

# Cash conversion cycle

Not what you're looking for?

1. (Cash conversion cycle) Auburn Hair Products has an inventory turnover of six times per
year, a receivables turnover of 10 times, and a payables turnover of 12 times. What are
Auburn Hair's inventory conversion period, receivables collection period, and payables
deferral period? What is the cash conversion cycle?

2. (Cash conversion cycle) Dennis Lasser has collected some information about a food wholesaler
in order to estimate its cash conversion cycle. The accumulated information is given.
What will Dennis find the cash conversion cycle to be?
Inventory turnover = 10x Inventory conversion period = 365/10 = 36.5 days
Receivables turnover = 20x Receivables collection period = 365/20 = 18.25 days
Payables turnover = 25x Payables deferral period = 365/25 = 14.6 days

3. (Cash conversion cycle) Brooks Toy Company has an inventory turnover of 12 times per
year, a receivables turnover of 20 times, and a payables turnover of 25 times. What are
Brooks' inventory conversion period, receivables collection period, and payables deferral
period? What is the cash conversion cycle?

##### Solution Summary

Solution discusses Cash conversion cycle

##### Solution Preview

Fnance
1. (Cash conversion cycle) Auburn Hair Products has an inventory turnover of six times per
year, a receivables turnover of 10 times, and a payables turnover of 12 times. What are
Auburn Hair's inventory conversion period, receivables collection period, and payables
deferral period? What is the cash conversion cycle?

2. (Cash conversion cycle) Dennis Lasser has collected some information about a food wholesaler
in order to estimate its cash conversion cycle. The accumulated information is given.
What will Dennis find the cash conversion cycle to be?
Inventory turnover = 10x Inventory conversion period = 365/10 = 36.5 days
Receivables turnover = 20x Receivables collection period = 365/20 = 18.25 days
Payables turnover = 25x Payables deferral period = 365/25 = 14.6 days

3. (Cash conversion cycle) Brooks Toy Company has an inventory turnover of 12 ...

##### MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

##### Learning Lean

This quiz will help you understand the basic concepts of Lean.

##### Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

##### Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

##### Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.