Explore BrainMass

Explore BrainMass

    Cash Conversion Cycle- Xtreme Toys

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

    Calculate the following:
    i. Inventory conversion period
    ii. Payables deferral period
    iii. Receivables conversion period
    iv. Operating cycle
    v. Cash conversion cycle (cash gap)
    vi. 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, 6:38 pm ad1c9bdddf


    Solution Summary

    The solution calculates Inventory conversion period, Payables deferral period, Receivables conversion period, Operating cycle, Cash conversion cycle, cash gap and annual cost of financing the cash gap.