Calculate the firm operating cycle

Assignment Help Financial Management

Reference no: EM131525279

Canadian Products is concerned about managing its operating assets and liabilities efficiently. Inventories have an average age of 130 days, and accounts receivable have an average age of 60 days. Accounts payable are paid approximately 40 days after they arise. The firm has annual sales of $36 million, its cost of goods sold represents 75% of sales, and its purchases represent 70% of cost of goods sold. Assume a 365-day year.

1. Calculate the firm's operating cycle. days

2. Calculate the firm's cash conversion cycle. days

3. Calculate the amount of total resources Canadian Products has invested in its CCC. Round your answer to the nearest dollar. $

Reference no: EM131525279

Questions Cloud

Women are treated well in an organization : What are the measures an HR manager needs to take to ensure that women are treated well in an organization?

Determine the optimal amount of particular inventory : Firm CFT is trying to determine the optimal amount of a particular inventory item to carry in its warehouse.

Assignment - police department organization paper : Write a 700 to 1,050-word paper in which you address the following: Identify major organizational theories associated with policing

Discuss the term managerial options : Rework Problem using the Black-Scholes model to estimate the value of the option. (Hint: Assume the variance of the project's rate of return is 6.87 percent.

Calculate the firm operating cycle : Canadian Products is concerned about managing its operating assets and liabilities efficiently. Calculate the firm's operating cycle.

How do you evaluate the worker appraisal in this case : How do you evaluate the worker's appraisal in this case? Do you suggest any techniques to avert politics creeping into the process of performance appraisal.

What was done in your chosen situations that was unethical : What was done in your chosen situations that was unethical? What is at least one example for each situation of how the person acting.

How much external funds required are necessary : If QTP decides to increase sales by 21 %, how much external funds required (EFR) are necessary?

How did life begin and how did mankind come into existence : How did life begin? How did mankind come into existence? What does it mean to be human? Are humans more important than animals?

User Account

All Pages