Explore BrainMass
Share

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 October 9, 2019, 5:20 pm ad1c9bdddf
    https://brainmass.com/business/management-accounting/cash-conversion-cycle-xtreme-toys-54561

    Attachments

    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