Purchase Solution

Cash conversion cycle :sample question

Not what you're looking for?

Ask Custom Question

6) Cash Conversion Cycle - Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the following firm:

Income statement data:
Sales 5,000
Cost of goods sold 4,200

Balance sheet data:
Beginning of Year End of Year
Inventory 500 600
Accounts receivable 100 120
Accounts payable 250 290

Please see attached problem.

Attachments
Purchase this Solution
Solution Summary

The solution calculates the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the firm.

Solution Preview

See attached files (either)

6) Cash Conversion Cycle - Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the following firm:

Income statement data:
Sales 5,000
Cost of goods sold 4,200

Balance sheet data:
Beginning of Year End ...

Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

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.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

View More Free Quizzes
Related BrainMass Solutions

  • Cash Conversion Cycle Problem

    It is calculated as Cash conversion cycle = AR days + Inventory days - AP days In this question AR days = 40 days Inventory days = 53 days AP days = 20 days Cash conversion cycle = 40+53 -20 = 73 days (b) If Coffee Mill were to shorten its inventory

  • Explain the steps of the cash conversion cycle for a hospital

    This question has divided the cash conversion cycle into eight stages, for each of the stage you are required to give your comments and state what action the management must take to speed up the cash conversion cycle.

  • Calculations for Management Accounting

    Determine the length of the cash conversion cycle. F. What is the meaning of the number you calculated in question E?

  • Conversion cycle and credit policy

    372109 Business finance Question 18 Which of the following statements is CORRECT? a. Other things held constant, it is better to have a relatively short than a relatively long cash conversion cycle. b.

  • Shortening a cash cycle

    References - resources: http://www.answers.com/topic/cash-conversion-cycle This solution provides the correct answer with explanation to the cash cycle question listed.

  • Cash Conversion Cycle

    Will the owner have a negative cash conversion cycle? Hello, I hope you are doing great. Please find my response below. I have done my best to answer your question to the best of my ability. I hope you find the response excellent.

  • a cash conversion cycle

    407398 a cash conversion cycle The Phoenix Corporation is interested in examining its cash conversion cycle.

  • 10-day vs 40-day cash conversion cycle

    So a 40-day cash conversion cycle is four times expensive than the 10-day cash conversion cycle. There is another angle to this issue. A 40-day cash conversion cycle means that the receivables are not collected for a longer period of time.

  • Cash Conversion Cycle

    444777 Cash Conversion Cycle.. A firm currently has a 36 day cash cycle.

View More Related Solutions