Calculate daily expenditure and firm annual savings

Assignment Help Finance Basics

Reference no: EM1359620

XieCorp is analyzing the performance of its cash management. On average, the company holds inventory 65 days, pays its suppliers in 35 days, and collects its receivables in 15 days. The firm has a current annual outlay of $1,960,000 on operating cycle investments. XieCorp currently pays 10 percent for its negotiated financing. (Assume a 360 day year.) (a) Calculate the firm's cash conversion cycle (CCC). (b) Calculate the firm's operating cycle (OC). (c) Calculate the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days.

Reference no: EM1359620

Questions Cloud

Write procedures using counter and sychronisation techniques : Write the following procedures: woman_wants_to_enter, man_wants_to_enter, woman_leaves, man_leaves, using counters and sychronisation techniques to ensure that the correct behaviour will occur.

Calculate the age of your son : Suppose you plan to start saving for your son's college education. He will begin college when he turns eighteen years old and will need $4,000 at that time and in each of the following three years.

Swot analysis in the healthcare industry : SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.

Ethical and legal standards for testing : Using information in the APA (2000) and APA (2009) articles on responsibilities and rights of test takers and test users, discuss why it is important to have ethical and legal standards for testing.

Calculate daily expenditure and firm annual savings : XieCorp is analyzing the performance of its cash management. On average, the company holds inventory 65 days, pays its suppliers in 35 days, and collects its receivables in fifteen days.

Counselors work with clients : Select two ethical, legal, and/or professional issues and reflect on how they might impact a counselor's court testimony and/or a counselor's work with clients.

Calculate npv of the campaign : Piano Tuners Unlimited is planning a promotional campaign at cost $6,000,000. The resultant after tax cash flows would be $500,000 each year in the absence of debt, and appropriate discount rate for an unlevered PTU would be 7.5 percent.

Guidelines to pre-test the designed survey : One of the guidelines is to pre-test the designed survey on a few participants to see what might be unclear or weak in the survey design.

Limits of confidentiality as required by illinois laws : Describe the limits of confidentiality as required by Illinois laws. How do these compare to the requirements of the APA ethics code?

User Account

All Pages