Calculate the firm''s operating cycle-cash conversion cycle

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Reference no: EM13883538

Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 32 days, and has an average collection period of 58 days. The firm has annual sales of $3.6 million and cost of goods sold of $2.4 million.

A. Calculate the firm's operating cycle and cash conversion cycle.

B. What is the dollar value of inventory by the firm?

C. If the firm could reduce the average age of its inventory from 73 days to 63 days, by how much would it reduce its dollar investment in working capital?

Reference no: EM13883538

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Calculate the firm''s operating cycle-cash conversion cycle : Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 32 days, and has an average collection period of 58 days. The firm has annual sales of $3.6 million and cost of goods sold of $2.4 million. Calculate the ..

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