Cash Conversion Cycle- Xtreme Toys
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.
https://brainmass.com/business/management-accounting/cash-conversion-cycle-xtreme-toys-54561
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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.
$2.19