Calculate the cash conversion cycle and operating cycle

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5. Given the following data:
Days inventory = 103 days, Days receivables = 41 days, and Days payables = 81 days
Compute the cash conversion cycle and operating cycle.

6. Compute the cost of trade credit given terms of 3/20 net 60.

7. A Company issues $1,000,000 of commercial paper with a maturity of 60 days and a discount rate of 5%. The paper is sold through a dealer who charges 0.25%. What is the effective cost of issuing the commercial paper?

Reference no: EM1367968

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